THE UNITED REPUBLIC OF TANZANIA NATIONAL FIVE YEAR DEVELOPMENT PLAN 2021/22 - 2025/26 “Realising Competitiveness and Industrialisation for Human Development”
MINISTRY OF FINANCE AND PLANNING June 2021
THE UNITED REPUBLIC OF TANZANIA
NATIONAL FIVE-YEAR DEVELOPMENT PLAN 2021/22–2025/26
Realising Competitiveness and Industrialisation for Human Development
MINISTRY OF FINANCE AND PLANNING JUNE 2021
“My call to Tanzanians, let us collaborate, unite and be one in building our Nation. Personally, I believe, with love, solidarity and mutual respect, and with the help of GOD, we will be able to get to where we all aspire to be.”
Mama Samia Suluhu Hassan, President of the United Republic of Tanzania addressing the 12th Parliament of the United Republic of Tanzania, 22 April 2021.
“Let me assure you that we will implement all strategic projects and develop new projects and fortunately we have included all strategic projects in the Five-Year National Development Plan 2021/22 - 2025/26 which we will start implementing in July this year. Therefore, I am confident that all projects will be implemented as planned in the sense of efficiency while focusing on the efficient use of financial resources”.
Mama Samia Suluhu Hassan, President of the United Republic of Tanzania, Labour Day Celebrations, 01 May 2021
KEYNOTE
As our country achieves the status of a middle-income economy, the impetus is placed on continuing
It is with a great privilege and honour that I introduce to build a Competitive and the Third National Five Year Development Plan (FYDP Industrial Economy for Human III; 2021/22 – 2025/26). The Plan is a continuation of Government’s efforts in achieving the goals we Development to achieve the set in the National Development Vision 2025 of our objectives of the vision with the enduring exertion to further improve the standard of following qualities: improving the living for all Tanzanians. living conditions of Tanzanians; My fellow Tanzanians, we should understand that later the existence of peace, security this year (9th December 2021) our country will celebrate sixty (60) years of our independence as a nation, and and unity; good governance fifty-nine (59) years as a Republic. Since we gained and the rule of law; the existence our independence, we have continued to translate our political emancipation into socioeconomic of an educated and learning freedom for human development. We believe that society; and building a strong and freedom and development are closely related and competitive economy. interdependent. That is, without freedom one cannot have development, and without development it is obvious that one’s freedom will be lost.
The Sixth Phase Government under my leadership, recognizes the inseparability of freedom and development, which has guided our history and national development efforts. Indeed, in order to effectively translate the political independence into the development of all Tanzanians, we realised that protecting our freedom is our sole responsibility, and we can best protect it through self-reliance. Furthermore, self-reliance comes from our own home-grown efforts and capabilities, while at the same time we proactively learn success stories from abroad, to achieve the development we define and seek. By recognising that inclusive development is an essential prerequisite for sustainable National prosperity, we have prepared strategies that spur broad-based development, while aiming at ensuring the development resulting from our efforts that benefit all Tanzanians.
The National Development Vision 2025 has been implemented through various Programs and The Long-Term Perspective Plan 2011/12 - 2025/26 whose implementation was divided into three phases of the Five-Year National Development Plans. The First Five Year National Development Plan 2011/12 - 2015/16 had a theme of unleashing growth potentials by de-bottlenecking binding constraints to growth. The Second Five Year National Development Plan 2016/17 - 2020/21 focused on nurturing industrialisation for economic
v transformation and human development. The Third and final Five-Year National Development Plan 2021/22 - 2025/26 have a theme of realising competitiveness and industrialization for human development that aims to increase efficiency and productivity in manufacturing using the resources available in abundance within the country.
It should be noted that, this Plan is the final Plan in the implementation of the Tanzania Development Vision 2025 as the National overall development framework. As our country has achieved the status of a middle-income economy which is an incentive that is placed on continuing to build a Competitive and Industrial Economy for Human Development to achieve the goals of the Vision with the following attributes: improving the living conditions of Tanzanians; the existence of peace, security and unity; good governance and the rule of law; the existence of well - educated and learning society; and building a strong and competitive economy.
Our country’s economy has continued to be strong and resilient that is supported by prudent micro and macro-economic policies, where the FYDP II implementation evaluation has shown that economic growth averaging about 6.9 percent throughout the period while inflation rate averaged at less than 5 percent during the period between 2016/17 2020/21. The Nation maintained adequate levels of foreign exchange reserves as well as sustainable national debt and a stable financial system, despite having a global pandemic of COVID-19 that affected economies of various countries in the world.
Notwithstanding the successes we have achieved due to the existence of effective policies that aimed at strengthening the economy, our country still continues to witness poverty. In addition, income and expenditure disparities continue to exist in our communities, being as one of the major risks in achieving the intended goals of the National Development Vision. Among the reasons for the slowdown of attaining the intended targets include: climate change including floods that affected basic infrastructure; outbreak of diseases including COVID-19 that affected trade and investment; low productivity and limited growth of primary sectors; limited private sector participation in various development activities; and changes in world oil prices that affected the operation of various economic activities.
The Third Plan focuses on addressing them and establishing a sustainable framework that will enable to achieve the goals of the National Development Vision. Areas of inspiration in the Plan include: Increasing the country’s capacity for production; building a competitive economy that will stimulate the country’s participation in trade and investment; and stimulate human development.
In achieving the priority areas of the Plan, the Government intends to take solid steps in: improving key productive infrastructures including roads, railways, water and air transport as well as reliable access to energy; continue to strengthen the business and investment enabling environment through effective policies to facilitate free private sector competition; and to improve and strengthen education and training systems, including reforming the education curriculum in line with labour market demand as well as integrating research and development with productive economic activities. Efforts to improve the business and investment enabling environment will focus on shortening procedures and easing regulations for starting and operating businesses; simplifying investment procedures by establishing one stop service centres to reduce bureaucracy and corruption; reducing barriers for investors including work permits for specialized professionals;
vi “Realising Competitiveness and Industrialisation for Human Development ” vii
and devise friendly approaches of revenue collection and expenditure control in accordance with laws and regulations. In addition, the Government, recognizing the In achieving the priority significance of international trade and foreign investment, areas of the Plan, the will continue to strengthen and promote relations with other nations, regional communities and international Government intends institutions as well as deepening the implementation of to take solid steps in: economic diplomacy policy. improving key productive The Third Plan has set ambitious goals that are the infrastructures including foundation of the nation’s long-term success. To achieve this, the contribution of every citizen and development roads, railways, water and partners is needed. In addition, Government institutions air transport as well as must work together to carry out their responsibilities reliable access to energy;. efficiently and effectively. Similarly, the Government will provide cooperation to the Private Sector which has been given special importance in implementing this Plan. Moreover, I guarantee and reaffirm that the Government is strongly committed to ensuring that the discipline and vigour, shall be considered and emphasized throughout its implementation.
Fellow Tanzanians, I conclude my message by emphasizing that the history of our Nation, reminds us of many examples of great potential when we come together to implement our Plans. Therefore, everyone should increase efforts, accountability and patriotism in fulfilling his/her responsibilities so that the goals of the National Development Vision 2025 can be achieved. The work continues.
GOD BLESS AFRICA, GOD BLESS TANZANIA!
H.E Samia Suluhu Hassan THE PRESIDENT OF THE UNITED REPUBLIC OF TANZANIA June 2021 viii “Realising Competitiveness and Industrialisation for Human Development ” PREFACE
The preparation of the Third Plan has involved various stakeholders including the Government, the Private Sector, Civil Society, Non-Governmental Organizations, Development Partners and the community at large.
The Third National Development Plan is the last in the implementation of the 15-year Long Term Perspective Plan which was specifically designed to implement the National Development Vision 2025 which aims to bring the Nation into a middle-income economy driven by industrialisation and human development. The decade of management of the previous two five-year development plans has laid a solid foundation for the implementation of the National Vision and witnessed our country entering a middle-income economy five years before time. The achievement has been geared by economic growth during the period of an average of 6.9 percent while the average per capita income (GNI) reaching 2,577,967 shillings (equivalent to US $ 1,080) in 2019, a level that is above the limit of US $ 1,036 set aside as a base for the country to join the group of countries with low-middle income status. On July 1, 2020, the World Bank declared Tanzania a country that qualified to achieve a middle-income economy. The government has continued to pursue the goal of building a society with a better life, peace, stability, and solidarity; good governance; an educated and learning society; and a competitive economy capable of inclusive and sustainable growth as identified in the National Development Vision 2025. Further, in sustaining this achievement there is a need to increase investment in human and other resources with a view to stimulating economic growth.
During the implementation of the First and Second Plans, the Government continued to implement various strategies aimed at accelerating the implementation of the National Development Vision which include: emphasis on increasing production capacity through industrial revolution; investment in key economic infrastructure; strengthening Government expenditure discipline and access to social services.
ix The First National Five-Year Development Plan 2011/12 - 2015/16 was implemented in tandem with the National Strategy for Growth and Poverty Reduction (MKUKUTA II). The Plan aimed to unleash growth opportunities for economic development whereas during the implementation of its Plan in line with MKUKUTA II as a nation we were able to rehabilitate the 2,707 km of Central Railway line; construction and rehabilitation of 2,775 km of paved roads; upgrading the Dar es Salaam port by increasing cargo handling capacity from 9.9 million tons in 2011/12 to 14.6 million tons in 2014/15; increase electricity generation from 900 MW in 2010 to 1,246.24 MW in 2015; increase the rate of food self-sufficient ratio from 104 percent in 2011/12 to 125 percent in 2014/15; and strengthening provision of education, water, health and nutrition services at all levels for urban and rural populations. Overall, the implementation of the first plan achieved approximately 60 percent of the planned targets.
Implementation of the Second National Five-Year Development Plan 2016/17 - 2020/21 geared by the slogan “Hapa Kazi Tu” has increased efficiency in achieving the objectives of the Second Five Year National Development Plan 2016/17 - 2020/21 by 93.8 percent. The Second Plan has had many successes in the implementation of major flagship projects including: Construction of Central Corridor Standard Gauge Railway (SGR); Julius Nyerere Hydropower Project - 2,115 MW; and Revamping Tanzania Airline Corporation Limited - ATCL. In addition, in the manufacturing sector, 105 percent of the targets were achieved whereby the sector’s contribution to GDP reached 25.1 percent compared to 21.1 percent in 2015/16. Similarly, the growth rate of production activities increased from 5.2 percent in 2016/17 to 8.5 percent in 2020/21 while the annual growth of the mining sector increased to 12.6 percent from 6.9 percent in 2015/16. In the social services sector, achievements include improving access to social services for rural and urban residents where school enrolment has increased at all levels of education, and access to health care services has reached the villages level. Further, the analysis of human development index shows that the country has made progress on human development indicators including: increase in life expectancy; increase in literacy rate; decline in gender inequality index; and decline in the basic needs and food poverty.
The main objective of the Third National Five-Year Development Plan is to contribute to the achievement of goals of the Tanzania Development Vision 2025. To achieve the vision, the third National Development Plan is organized to accommodate eight (8) main chapters as follows: Chapter one summarizes the preparation of the Plan; Chapter two deals with the evaluation of the Second National Development Plan; Chapter three focuses on modalities for promotion of participation of the Private Sector and Non-State Actors in economic development in the country; Chapter four presents the concept behind building a competitive and industrial economy for human development as well as provide a definition of the importance and relationship of the five priority areas of the Plan; Chapter five outlines strategic measures for competitiveness, industrial development and human development; Chapter six sets out the estimates of financial resources for financing the implementation of the Plan; Chapter seven outlines the tools that will be used to oversee the implementation of the plan as well as outlines the roles of various institutions in the implementation of the Plan and Chapter eight describes the Monitoring and Evaluation of the implementation of the Plan.
Preparation of the Third Plan has involved various stakeholders from the Government, the Private Sector, Civil Society, Non-Governmental Organizations, Development Partners and the community at large. Preparation also involved consideration of various documents that included: TDV 2025, the Long Term Perspective Plan 2010/11 – 2025/26, CCM Election Manifesto for the General Election of year 2020, speeches by the Fifth and Sixth Phase Presidents during the opening of the 12th National Assembly in November, 2020 and March
x “Realising Competitiveness and Industrialisation for Human Development ” xi
2021 respectively, The United Nations Agenda 2030 for Sustainable Development Goals (SDGs-2030), Addis Ababa Action Agenda for Financing for Development, Paris Agreement on Climate Change, EAC Vision 2050, The main objective SADC Vision 2050 and SADC Regional Indicative Strategic of the Third National Development Plan (RISDP–2030) and the Africa Union Agenda 2063. Five-Year Development Plan is to contribute In implementing the Third Five Year National Development Plan the Government will focus on to the achievement of stimulating an inclusive and competitive economy, goals of the Tanzania strengthening industrial production capabilities and service delivery, promoting investment and trade, Development Vision bringing development to our citizens and building 2025. To achieve human resource capacity. the vision, the third To facilitate its implementation, this Plan has been National Development developed in line with the Implementation Strategy Plan is organized to which is divided into three implementation plans. First, is the Action Plan which outlines all activities and accommodate eight (8) objectives intended for whole period of implementation. main chapters as follows: The second is the Financing Strategy (FS) that shows how to avail funding for development projects as well as other strategic steps outlined in the Plan. The latter has prepared a Monitoring and Evaluation Strategy (MES) for monitoring the implementation of projects to know whether the intended results are being met and prompt corrective measures whenever needed to ensure delivery of the intended results. Through the slogan of the Sixth Phase Government of Kazi Iendelee, each of us has a responsibility to fulfil assigned responsibilities effectively in order to achieve effective implementation of this Plan.
GOD BLESS AFRICA, GOD BLESS TANZANIA
Dkt. Mwigulu Lameck Nchemba (MP), Minister of Finance and Planning JUNE 2021 ABBREVIATIONS
ADP Annual Development Plan AfCFTA African Continental Free Trade Area AIDS Acquired Immunodeficiency Syndrome ASDP II Agricultural Sector Development Programme II ATCL Air Tanzania Company Limited BEST Business Environment Strengthening Tanzania BITs Bilateral Investment Treaties BoT Bank of Tanzania BTAs Bilateral Trade Agreements CBOs Community-Based Organisations CBWSOs Community-Based Water Supply Organisations CHF Community Health Fund COMESA Common Market for Eastern and Southern Africa COSTECH Tanzania Commission for Science and Technology CPIA Country Policy and Institutional Assessment CSA Climate Smart Agriculture CSOs Civil Society Organisations CSR Corporate Social Responsibility DANID Danish Development Cooperation DART Dar es Salaam Rapid Transit DDI Domestic Direct Investment DFID Department for International Development DIB Development Impact Bond DPs Development Partners DRC Democratic Republic of the Congo DSA Debt Sustainability Analysis EAC East African Community EACOP East African Crude Oil Pipeline ECAs Export Credit Agencies
xii “Realising Competitiveness and Industrialisation for Human Development ” EIA Environmental Impact Assessment EPZs Export Processing Zones ESDP Education Sector Development Plan ESPR Education Sector Development Plan EWURA Energy and Water Utilities Regulatory Authority FBOs Faith-Based Organisations FDCs Focal Development Colleges FDI Foreign Direct Investment FYDP Five Year Development Plan GCF Green Climate Fund GDP Gross Domestic Product GFC Global Financial Crisis GNI Gross National Income GVC Global Value Chain HBS Household Budget Survey HDI Human Development Index HIV Human Immunodeficiency Virus HSSP III Health Sector Strategic Plan III ICT Information and Communications Technology IMTC Inter-Ministerial Technical Committee IWRMDPs Integrated Water Resources Management and Development plans JNHPP Julius Nyerere Hydro Power Project LED Local Economic Development LGAs Local Government Authorities LGRP Local Government Reform Programme LIC Low-income country LLGs Lower-Level Governments LMIC Lower middle-income country LNG Liquidation of Natural Gas
xiii LSRP Legal Sector Reform Programme LTPP Long Term Perspective Plan MDAs Sector Ministries, Independent Departments and Agencies MDG Millennium Development Goals MEL Monitoring Evaluation and Learning MES Monitoring and Evaluation Strategy MIGA Multilateral Investment Guarantees Agency MKUKUTA Mkakati wa Kukuza Uchumi na Kupunguza Umaskini Tanzania MoFP Ministry of Finance and Planning MPI Multi-dimensional Poverty Index MSME Micro, Small and Medium Enterprise MTEF Medium- Term Expenditure Framework MVA Manufacturing Value Added MW Megawatt NACTE National Council for Technical Education NBS National Bureau of Statistics NCD Non-Communicable Diseases NaCONGO National Council of Non-Government Organisations NDC National Development Corporation NEEC National Economic Empowerment Council NGOs Non-Government Organisations NHC National Housing Corporation NHIF National Health Insurance Fund NIS National Innovation System NRW Non-Revenue Water NSGRP National Strategy for Growth and Reduction of Poverty ODA Official Development Assistance OECD Organisation for Economic Co-operation and Development PMO Prime Minister’s Office PO-RALG President’s Office - Regional Administration and Local Government PPP Public Private Partnership PPD Public - Private Dialogue
xiv “Realising Competitiveness and Industrialisation for Human Development ” PPPFF Public Private Partnerships Facilitation Fund PRS Poverty Reduction Strategy PSRP Public Service Reform Programme PTR Pupil Teacher Ratio R&D Research and Development RISDP Regional Indicative Strategic Development Plan RWSSP Rural Water Supply and Sanitation Programme SADC Southern African Development Community SC Steering Committee SDGs Sustainable Development Goals SEZs Special Economic Zones SGR Standard Gauge Railway SIB Social Impact Bond SIDO Small Industries Development Organisation SIDP Sustainable Industrial Development Policy SME Small and Medium Enterprise SPR Strategic Petroleum Reserve STAMICO State Mining Corporation STI Science, Technology and Innovation STEM Science, Technology, Engineering and Mathematics SUMATRA/LATRA Surface and Marine Transport Regulatory Authority/Land Transport Regulatory Authorities TADB Tanzania Agricultural Development Bank TAF Technical Assistance Fund TANESCO Tanzania Electric Supply Company Limited TANROADS Tanzania National Roads Agency TANTRADE Tanzania Trade Development Authority TAZARA Tanzania Zambia Railway Authority TB Tuberculosis TBT Technical Barriers to Trade TCCIA Tanzania Chamber of Commerce, Industry and Agriculture TDV Tanzania Development Vision TECC Tanzania Entrepreneurship and Competitive Centre
xv TEMDO Tanzania Engineering and Manufacturing Design Organisation TFDA Tanzania Food and Drugs Authority TIB Tanzania Investment Bank TIC Tanzania Investment Centre TIRA Tanzania Insurance Regulatory Authority TIRP Tanzania Intermodal and Rail Development Project TMDA Tanzania Medicines and Medical Devices Authority TNBC Tanzania National Business Council TPA Tanzania Ports Authority TPB Tanzania Postal Bank TPSF Tanzania Private Sector Foundation TRA Tanzania Revenue Authority TRC Tanzania Railways Corporation TZS Tanzanian Shillings TVET Technical and Vocational Education and Training USADF United States African Development Foundation USAID United States Agency for International Development USD United States Dollar VAT Value Added Tax VETA Vocational Education and Training Authority VET Vocational Education and Training WHO World Health Organisation
xvi “Realising Competitiveness and Industrialisation for Human Development ” TABLE OF CONTENTS
KEYNOTE v
PREFACE ix
LIST OF ABBREVIATIONS xii
LIST OF TABLES xvii
CHAPTER ONE 1
INTRODUCTION 2
1.1. Background 2
1.2. Objectives of the FYDP III 4
1.3. Salient Features 5
1.4. Process of Developing the FYDP III 6
1.5. The Layout of FYDP III 7
CHAPTER TWO 9
REVIEW OF IMPLEMENTATION OF THE SECOND NATIONAL FIVE-YEAR DEVELOPMENT 10 PLAN 2016/17-2020/21
2.1. Overview 10
2.2. Macroeconomic Performance 11
2.3. Sectoral Performance 16
2.4. Human Capital Development and Social Services 20
2.4.1. Education 20
2.4.2. Health Sector 24
2.4.3. Coverage of Health Insurance Schemes 26
2.4.4. Access to Sources of Safe Water and Improved Sanitation 26
2.5. Poverty Reduction and Economic Empowerment 26
2.5.1. Human Development Index, Status of Poverty and Inequality 26
2.5.2. Employment Creation 28
2.5.3. Gender Equality and Women Economic Empowerment 28
xvii 2.6. Interventions to Foster Investment 29
2.6.1. Improvement of Hard Infrastructure 29
2.6.2. Development of Soft Infrastructure 31
2.6.3. Business Environment 31
2.6.3.1. Private Sector Facilitation 32
2.6.3.2. Public Private Partnership (PPP) 33
2.6.3.3. Good Governance and Accountability 33
2.6.4. Peace, Security and Political Stability 35
2.7. Assessment of Financing of the FYDP II 35
2.8. Monitoring and Evaluation of FYDP II 35
2.9 Strengths, Weaknesses, Opportunities and Challenges (SWOC) of the FYDP II 36
2.10 Status of Flagship Projects 38
2.11 Overall Performance and Emerging Issues 39
2.11.1 Overall Performance 39
2.11.2 Implementation Challenges 40
2.12 Way Forward 41
CHAPTER THREE 43
PROMOTING PRIVATE SECTOR AND NON-STATE ACTORS’ PARTICIPATION IN 44 ECONOMIC DEVELOPMENT
3.1. Overview 44
3.2. The Private Sector in Tanzania 44
3.2.1. Participation in Agriculture 45
3.2.2. Participation in Other Productive Sectors 45
3.3. The Non-State Actors in Tanzania 47
3.4. Regulatory and Policy Limitations Impacting Private Sector and Non-State Actors Development 47
3.4.1.Private sector 47
3.4.2.Non-State Actors 48
3.5. Policies and Institutional Position on Private Sector and Non-State Actors Development 48
3.6. Local Content and Local Economic Development 49
xviii “Realising Competitiveness and Industrialisation for Human Development ” 3.7. Proposed Strategic Interventions for Private Sector and Non-State Actors Development 50
3.8. Building Trust in the Public-Private Dialogue (PPD) 51
CHAPTER FOUR 53
STRATEGIC POSITIONING FOR IMPLEMENTATION OF FYDP III. 54
4.1. Overview 54
4.2. Consolidating the Middle-Income Status 54
4.3. Guiding Norms and Values for FYDP III 56
4.4. Experience from Global Context of Competitiveness 57
4.5. Framework of FYDP III 60
4.5.1. Highpoints of the FYDP III 60
4.5.2. Good Governance 61
4.5.3. Economic Growth 62
4.5.3.1. Competitiveness 62
4.5.3.2. Industrialisation and Services 66
4.5.3.3. Trade and Investment 70
4.5.4. Social Development 71
4.6. Towards Specific Interventions 72
CHAPTER FIVE 73
STRATEGIC INTERVENTIONS FOR COMPETITIVENESS, INDUSTRIALISATION AND HUMAN 74 DEVELOPMENT
5.1. Introduction 74
5.2 Interventions for Realizing an Inclusive and Competitive Economy 74
5.2.1 Competitive Economy 75
5.2.2 Promoting Macroeconomic Stability for a Competitive Economy 76
5.2.3 Unlocking Infrastructural Competitiveness 77
5.2.4 Communication Sector 79
5.2.5 Energy Sector 80
5.2.6 Leveraging Institutions for Competitiveness 83
xix 5.3 Interventions for Deepening Industrialization and service provision 84
5.3.1 Agriculture 84
5.3.1.1 Application of Science, Technology and Innovation to Improve Productivity and Yields in 85 Agriculture Sector
5.3.2 Manufacturing 91
5.3.3 Mining 93
5.3.4 Construction 94
5.3.5 Environmental and Natural Resources Management 95
5.3.6 Science, Technology and Innovation 96
5.3.7 Tourism Sector 99
5.3.8 Information, Sports and Creative Arts 100
5.3.9 Financial Services 103
5.3.10 The Blue Economy 106
5.4 Investment and Trade Promotion 107
5.4.1 Consolidating Business and Investment Environment Reforms 107
5.4.2 Trade 108
5.4.3 Foreign Relations and Economic Diplomacy 109
5.5 Interventions for Human Development 111
5.5.1 Quality and Relevant Education 112
5.5.2 Health 115
5.5.3 Water Supply and Sanitation 116
5.5.4 Urban Planning, Housing and Human Settlement Development 117
5.5.5 Food Security and Nutrition 118
5.5.6 Social Protection 120
5.5.7 Good Governance and Rule of Law 122
5.5.8 Effective and Efficient Justice Service Delivery System 123
5.5.9 Peace, Security and Political stability 125
5.5.10 Development of New Capital City of Tanzania – Dodoma 126
5.6 Interventions for Skills Development 127
xx “Realising Competitiveness and Industrialisation for Human Development ” 5.7 Flagship Projects of FYDP III 130
5.8 Other Strategic Projects for the FYDP III 133
5.9 Expected Outcomes for a Competitive Economy 133
CHAPTER SIX 135
FINANCING IMPLEMENTATION OF FYDP III 136
6.1. Overview 136
6.2. Resource Envelope for FYDP III 136
6.3. Sources of Development Finance for the FYDP III 138
6.3.1. Public Sector Sources of Finances 138
6.3.1.1. Domestic Revenue 139
6.3.1.2. Domestic Borrowing 139
6.3.1.3. External Public Sources 140
6.3.2. Private Sector Sources of Financing 141
6.3.2.1. Domestic Private Sector Sources 141
6.3.2.2. External Private Sector Sources 142
6.4. Institutional, Policy and Legal Reforms 143
6.4.1. Domestic Revenue 143
6.4.2. Domestic Private Finance 144
6.4.3. External financing 145
6.4.4. Climate Change Fund 145
6.5. Financing Risks and Mitigation Measures 146
6.6. Stakeholders Role in Supporting the Financing Plan 146
6.6.1. Government 147
6.6.2. Private Sector 148
6.6.3. Development Partners 148
6.6.4. Non-state Actors 148
6.6.5. Financial Service Providers 149
6.6.6. Academia and Research Institutions 149
xxi CHAPTER SEVEN 151
IMPLEMENTATION OF FYDP III 152
7.1. Overview 152
7.2. Implementation Frameworks of FYDP III 152
7.3. Implementation Strategies of FYDP III 152
7.4. Implementation Coordination Structure 153
7.4.1. Government 155
7.4.2. Private Sector and Civil Society 155
7.5. Implementation Risk 155
CHAPTER EIGHT 157
MONITORING AND EVALUATION 158
8.1. An Overview of M&E 158
8.2. Monitoring and Evaluation Conceptual Framework 158
8.3. Objective of the M&E Framework 160
8.4. Operationalization for FYDP III M&E 160
8.4.1. M&E Strategy 160
8.4.2. Result Framework for FYDP III 160
8.4.3. Deliverables of the M&E Framework 161
8.4.4. Approaches to deliver M&E outputs 161
8.5. Evaluation of FYDP III 163
ANNEXES: IMPLEMENTATION MATRICES OF FYDP III INTERVENTIONS 165 - 321
xxii “Realising Competitiveness and Industrialisation for Human Development ” LIST OF TABLES
Table 1: Tax Reforms during Implementation of FYDP II 12
Table 2: External Debt Sustainability Indicators 15
Table 3: Foreign Direct Investment between 2016 and 2019 16
Table 4: Trends of Inequality in Mainland Tanzania 16
Table 5: Jobs Created by Main Sectors from 2016/17 to 2018/19 28
Table 6: Trend of Loans Issued to Women Entrepreneurs 29
Table 7: Tanzania’s Position in the Ease of Doing Business Reports (2015-2020) 31
Table 8: PCCB Corruption Cases Statistics, 2015/16–2019/20 34
Table 9: SWOC Analysis after Evaluation of FYDP II 36
Table 10: Flagship Projects 38
Table 11: Increasing Knowledge and Technology Content (selected examples) 66
Table 12: Performance Indicators and Targets for Implementation of Agriculture 75
Table 13: Target and Indicator Trends for Manufacturing 77
Table 14: Indicators and Targets for Implementation of Mining Sector Interventions 81
Table 15: Performance Indicators and Targets for Construction Sector 83
Table 16: Performance Indicators and Targets for Natural Resources and Environmental Protection 84
Table 17: Overall Competitiveness Indicators 89
Table 18: Indicators for Macroeconomic Stability for a Competitive Economy 92
Table 19: Indicators and Targets for Banking and Payment Sub-Sector 94
Table 20: Targets and Indicators for Creative Industries 95
Table 21: Resource Envelop for FYDP III (Million TZS) 96
Table 22: Target Indicators for Innovation, Science and Technologies 97
Table 23: Targets and Indicators for Tourism Sub-sector 100
xxiii Table 24: Targets and Indicators for Creative Industries 102
Table 25: Indicators and Targets for Banking and Payment Sub-Sector 104
Table 26: Indicators and Targets for Insurance Sub-Sector 105
Table 27: Indicators and Targets for Capital Market Sub-Sector 106
Table 28: Indicators and Targets for Trade Development 109
Table 29: Indicators and Targets for Foreign Relations and Economic Diplomacy 110
Table 30: Human Development Indicators 111
Table 31: Indicators and Targets for Education and Capacity Development 112
Table 32: Indicators and Targets for the Health Sector 116
Table 33: Indicators for Water Supply and Sanitation 117
Table 34: Indicators and Targets for Urbanization, Housing and Sustainable Human Settlements 118
Table 35: Indicators and Targets for Food Security and Nutrition 119
Table 36: Indicators and Targets for Social Protection 121
Table 37: Performance Indicators and Targets for Effective and efficient Justice Delivery System. 124
Table 38: Indicators and Targets for Enhanced Public Safety, Law and Order 125
Table 39: Indicators and Targets for Skills Development 128
Table 40: Expected Outputs 134
Table 41: Resource Envelop for FYDP III (Million TZS) 137
xxiv “Realising Competitiveness and Industrialisation for Human Development ” LIST OF FIGURES
Figure 1: Total Enrolments in Government and Non-Government 21 Pre-Primary Schools by Sex, 2014-2018
Figure 2: Conceptual Framework for the FYDP III 61
Figure 3: High-Tech Exports as Percentage of Total Manufactured Exports. 67
Figure 4: Implementation and Coordination Structure 154
Figure 5: Conceptual Framework for FYDP III M&E Framework 159
Figure 6: Result Chain for the FYDP III 161
LIST OF BOXES
Box 1: The State of Start-ups 52
Box 2: Spin-off Products from Cashew nuts 68
Box 3: Horticultural Industry in Tanzania 86
Box 4: Leather Industry 87
Box 5: Commercialization and Scaling-Up Technology 92
Box 6: Promoting Digital Economy in Tanzania 98
Box 7: Promoting Blue Economy in Tanzania 107
Box 9: Flagship projects of FYDP III 130
xxv
1
INTRODUCTION 1 CHAPTER ONE INTRODUCTION
1.1. Background
In 1999, Tanzania launched the National Development Vision 2025 (TDV 2025) as a tool to rally national efforts towards achieving the expected social and economic development goals. The launch was followed by a series of policy, institutional and systemic reforms in the 2000s. The breadth and depth of these reforms were substantial following the scale of economic challenges Tanzania had experienced in the 1980s and 1990s. During that period, the country had experienced a slower economic growth rate, severe shortages of essential goods and services, high inflation, low government revenue collection, shortage of revenue from exports, as well as large and unsustainable debt.
During the 1990s and 2000s, the Government introduced reform programmes aimed at improving performance and service delivery in the public sector. Key among these were the Public Service Reform Programme (PSRP), the Local Government Reform Programme (LGRP), the Public Financial Sector Reform Programme (PFSRP) and the Legal Sector Reform Programme (LSRP). Reforms also aimed to address shortcomings in social service delivery which saw regulatory and process related reforms in the key sectors of Education, Health and Water. In addition, the Government established and strengthened regulatory institutions in the economic and infrastructure sectors, including the Surface and Marine Transport Regulatory Authority (SUMATRA, 2001) recently divided into the Land Transport Regulatory Authorities (LATRA) and Tanzania Shipping Agency Corporation (TASAC), Energy and Water Utilities Regulatory Authority (EWURA), and other specialized institutions such as the Tanzania Revenue Authority (TRA, 1996), the Tanzania Ports Authority (TPA, 2004) , and Tanzania Roads Agency (TANROADS, 2000).
Reforms also included review of the Government’s core responsibilities and those of other stakeholders especially the Private Sector and Civil Society. On that basis, the Government introduced a number of programmes including the Business Environment Strengthening for Tanzania (BEST), Financial Sector Reforms, and privatization of public enterprises, with a view to enabling the private sector to participate in economic activities. The reform era also saw the preparation of long-term sector development plans such as the Transport Sector Development Plan, Integrated Tourism Plan (2002), Agricultural Sector Development Programme, Ports Comprehensive Development Plan (2009), Energy Sector Development Plan and Power Sector Development Plan (2008).
The launch of the TDV 2025 took place at a time when the country was facing a huge external debt burden. As a result, the country entered into the Multilateral Debt Relief Initiative (MDRI) and the Highly Indebted Poor Countries initiatives (HIPC) Debt Relief Programme (HIPC). This situation forced the Government to prepare medium-term plans in the framework of the Poverty Reduction Strategy Paper (PRSP) which was supported by international financial institutions and donor countries. The strategies that were under the PRSP framework
2 “Realising Competitiveness and Industrialisation for Human Development ” INTRODUCTION
include: The three-year Poverty Reduction Strategy (2000/01 - 2002/03) which was followed by the five-year Poverty Reduction Strategy known as the first National Strategy for Growth and Reduction of Poverty (NSGRP I or MKUKUTA I in Kiswahili) 2005/06 - 2009/10. MKUKUTA I was followed by the Second National Strategy for Growth and Reduction of Poverty – NSGRP II or MKUKUTA II (2010/11 – 2015/16).
Following evaluation of the progress made towards the TDV 2025 goals that was conducted in 2009/10, the Government prepared a Long-Term Perspective Plan (LTPP) 2011/12 - 2025/26 whose implementation was planned to be divided into three sequential phases of five-year development plans. The decision to return to the medium-term planning process aimed at redirecting efforts to achieve the Vision’s goals by focusing on economic growth in tandem with poverty reduction and human development.
The three five-year development plans are interlinked and prepared based on specific themes. The first Five-Year National Development Plan 2011/12-2015/16, with the theme Unleashing Tanzania’s Latent Growth Potentials, identified intervention areas (sectors/issues) to more effectively unlock growth potentials. FYDP III, which was implemented in conjunction with MKUKUTA II, focused on addressing infrastructure challenges, especially access to electricity (with emphasis on availability, accessibility and reliability), ports (with emphasis on Dar es Salaam Port), roads, railways and expansion of social service infrastructure. Efforts to reduce poverty, improve livelihoods, good governance and accountability were included in all the five-year development plans.
An evaluation of the implementation of the first Five-Year National Development Plan identified mixed results: in some areas the performance was satisfactory while in others, implementation was below the set targets. The major challenges identified by the evaluation of FYDPI include: financing (the trend of allocation of development funds compared to actual disbursement, availability, and timely disbursement of funds), poor performance in management and deficiencies in the business environment and discipline in execution. However, this assessment faced the challenge of accessibility of data.
In the LTPP, the second Five-Year National Development Plan (FYDP II) (2016/17-2020/21) was assigned the theme: - Nurturing an Industrial Economy. However, the theme was reviewed in line with the Government’s decision to integrate FYDP III and the Tanzania Poverty Reduction Strategy (MKUKUTA II) in May 2015. This move included issues of poverty reduction and improved living conditions that were key to the MKUKUTA. Thus, the focus on economic growth and reform as well as reducing poverty and improving people’s lives led to the revision of the theme of the second Plan (FYDP II) to Nurturing Industrialisation for Economic Transformation and Human Development.
The change of the theme of FYDP II along with the Government’s commitment to continue implementing the industrial agenda, has led to a change in the theme of FYDP III. The theme of the FYDPIII (2021/22-2025/26) has changed from Realising Competitiveness–led Export Growth as stipulated in the LTPP to “Realising Com- petitiveness and Industrialisation for Human Development”, to reflect the goals of the vision which include building a strong, competitive economy, of middle-income status and semi-industrialised economy that can compete regionally and internationally without losing the goal of strengthening human development.
The FYDP III, therefore, will seek to enable the country to more effectively use her geographical opportunities and resources for production and economic growth, while, ensuring that the outcomes benefit all citizens in line with the Vision’s goals of a high quality of life.
The FYDP III Plan is the final phase in the implementation of the DTV 2025 and the last part of the LTPP); It aims to put up a specific environment for building on the achievements obtained since the launching of the TDV 3 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
2025. For that reason, FYDP III will continue to implement the projects and programmes aimed at opening up economic opportunities, build an industrial economy, strengthen competitiveness in domestic, regional and global markets as well as strengthen human development. In addition, FYDP III provides guidance and insights for the country’s next long-term development vision. In view of that, the Government recognizes the importance of the use of Science and Technology and Innovation (STI) and digitalisation, attendant skills development, creative potential, and the use of digital issues to ensure that Tanzania does not lag behind.
1.2. Objectives of the FYDP III
The main objective of the Third Plan is to contribute to realisation of the National Development Vision 2025 goals. These goals include Tanzania becoming a middle-income country status and continue with transformation of becoming an industrial country with a high human development or a high standard of living. Upon reaching its vision, the Tanzania is envisioned to have the following attributes: peace, stability and unity; good governance; an educated and learning society; and a strong economy that can withstand competition and benefit many people.
Therefore, the FYDP III enhances the thrust of previous plans by emphasizing economic reform, industrial development, and the knowledge and ability to participate fully in international trade. Tanzania can benefit more from its geographical location, abundance natural resources than it is now. The peace and political stability of a country are valuable assets that, among other things, will attract local and foreign investors to areas with economic growth opportunities. Further, FYDP III highlights for increased investment in science, technology and innovation as a way for the country to move from comparative advantage into competitive advantages, stimulate industrial development and become competitive in local, regional and global markets.
The third Plan aims to strategically use resources to achieve the goals of the National Development Vision 2025. In addition, FYDP III aims to implement sectoral strategic plans, agreements and regional and international strategic plans including the implementation of the Sustainable Development Goals - SDGs to accelerate economic growth and social development.
The specific objectives of the FYDP III are: (i) To build on achievements realised towards attainment of TDV 2025 to make Tanzania a semi-industrialised, middle-income country by 2025; (ii) To strengthen capacity building in the areas of science, technology and innovation to enhance compet- itiveness and productivity in all sectors especially the productive, manufacturing and services sectors to enable Tanzanians to benefit from the opportunities available within the country; (iii) To strengthen the industrial economy as a basis for export-driven growth including investing in new products and markets and enabling Tanzania to become a production hub in the countries of the East, Central and Southern Africa and thus increasing the country’s contribution to international trade; (iv) To enhance the scope of Tanzania’s benefits from strategic geographical opportunities through enabling improved business environments and strengthening the country’s regional position as a hub for production, trade, supply and transportation; (v) To facilitate increased business start-up and private sector involvement to find the best way to promote the growth of the sector in tandem with job creation and make the sector a strong and reliable partner in development;
4 Realising Competitiveness and Industrialisation for Human Development INTRODUCTION
(vi) To promote exports of services including tourism, banking services, insurance and entertainment; (vii) To strengthen the implementation of FYDP III including prioritization, planning, integration and alignment of implementation interventions; (viii) To accelerate inclusive economic growth through poverty reduction and social development strategies as well as productive capacity for youth, women and people with disabilities; (ix) To ensure that regional and global agreements and commitments are fully integrated into national development for the benefit of the country; (x) To strengthen the relationship between the sectors that are endowed with natural wealth and resources with other economic and social sectors; (xi) To strengthen the role of Local Government Authorities (LGAs) in bringing about development and increasing income at the community level; and (xii) To strengthen the country’s capacity to finance development by ensuring access to domestic revenue and effective management of public expenditure.
1.3. Salient Features
The pursuit of FYDP III objectives focuses on the following policy thrusts: (i) Identification of interventions designed to improve competitiveness of the country (competitive economy): both productivity and quality of products/services and attractiveness of the country to foreign investment. One of the main requirements for improved productivity and competitive economy is enhanced levels and quality of human capital mainly in science, technology and innovation (STI) capabilities; (ii) Interventions to further deepen industrialisation, driven by STI capabilities for value addition in manufacturing and productive sectors (agriculture, fishing, livestock, mining, natural resources and others); (iii) Trade and investment: Increasing Tanzania’s participation in global and regional trade in which exports shall embody local value addition (raised from medium to high technology content). Further, apart from understanding international trade policy requirements, economic diplomacy will be applied to promote foreign investment and trade. In addition, considering the role of private sector in investment, trade, employment creation, developing coherent revenue strategies, broadened tax base, the FYDP III focused on strengthening private sector capacity and deepening engagement capability that will facilitate implementation of the policy that attracts domestic and foreign investment and trade; (iv) To enhance the quality of the outcomes of FYDP III, consistent with high-level human development goal of TDV 2025, interventions for social development are articulated. Emphasis has been given on coverage, equity and quality of services in order to attain inclusive economy; and (v) FYDP III amplifies on skills development, through interventions that address the problem of low soft skills (knowledge, creativity, persistence, self-drive and attitude) and mismatch between the skills demanded by employers and compared to training by academic institutions. The behavioural nature of soft skills requires sustainable skills development from early child education as well as demands from the labour market and self-employment. It is evidently clear that for many decades ahead, countries that will benefit will include those with internationally competitive skills. In that regard, Tanzania needs to continue to develop its human capital as well as increasing the local skills on rare and specialized areas in order to efficiently exploit the country’s enormous natural resources. The implementation of these sub-themes will require cross-sector coordination and collaboration.
5 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
FYDP III recognises the contribution of the private sector, civil society organizations and development partners in facilitation of key outcomes. The implementation of strategic intervention outlined will require effective coordination and collaboration of these complementary efforts.
1.4. Process of Developing the FYDP III
Preparation of the FYDP III applied a mix of methodologies and customized institutional arrangements embedded in the current Government structure. The process involved the following stages:
(a) Comprehensive Evaluation of the Implementation of FYDP II The Government conducted an independent evaluation of the implementation of FYDP II. The evaluation assessed progress towards the set objectives and targets with the aim of establishing achievements, opportunities, challenges and gaps relative to the targets set by FYDP II. The objective of the evaluation was to identify lessons for improving the formulation and implementation of FYDP III. The evaluation also assessed progress made in implementing agreeable international and regional commitments.
(b) Literature Review The preparation of this Plan involved a comprehensive review of various documents including national and sectoral policies, speeches and guidance from national leaders, international and regional commitment, research, peer-reviewed journals and international publications. The review informed the appraisal of Tanzania’s socio-economic status and competitiveness. Documents reviewed include the Tanzania Development Vision 2025, Tanzania Long Term Perspective Plan (LTPP) 2011/12 – 2025/26, United Nations Agenda 2030 for Sustainable Development (Agenda 2030), Addis Ababa Action Agenda for Financing for Development, Paris Agreement on Climate Change 2015, EAC Vision 2050, SADC Vision 2050, SADC Regional Indicative Strategic Development Plan (RISDP–2030) and the Africa Union Agenda 2063. In addition, references were made to various political parties Manifestos including the 2020 – 2025 CCM Election Manifesto. Other documents reviewed include commissioned background studies focusing on the Demographic Dividend, Development Financing, Blue Economy and digital economy. Further, other official surveys (or reports thereof) which were reviewed include: Household Budget Surveys; Industrial Production Surveys; and Demographic and Health Surveys. These reviews provided insights on a contextually relevant framework for building a competitive, industrialising economy capable of supporting trade, investment and human development.
(c) Consultations Stakeholders were consulted at different levels of FYDP III preparations including: (i) Internal consultations: These were conducted within and among Government institutions, technical experts and leaders in various levels of Government in order to ensure common understanding of the process and key issues for FYDP III. (ii) Sector consultations: The Ministry of Finance and Planning worked closely with all sector ministries to ensure consistency, validity, and accuracy of information and data throughout the initial drafting of the FYDP III. A twin objective of engaging sector ministries throughout focused on enhancing ownership of FYDP III. (iii) Wider stakeholder consultations: These involved experts from Government Ministries, Departments and Agencies (MDAs), Local Government Authorities (LGAs), Regional Secretariat (RS) the Private Sector, Civil
6 Realising Competitiveness and Industrialisation for Human Development INTRODUCTION
Society Organisations (CSOs), Academic and Research Institutions, Parliament and Development Partners. The consultations were aimed at collecting views and opinions, building common understanding, capacity building and validation of FYDP III
The FYDP III is developed in line with its three implementation strategies including: (i) The Action Plan, also referred as the Implementation Strategy (IS), details all activities and targets to be undertaken; (ii) Financing Strategy which identifies sources of funds to finance development projects and other interventions in FYDP III; and (iii) A Monitoring and Evaluation Strategy for tracking implementation of FYDP III.
Further, the Communication Strategy of the Ministry of Finance and Planning will be updated to serve as a tool to ensure the FYDP III is well communicated to all stakeholders.
Drafting of FYDP III involved a series of drafting and selective expert consultations to finalise FYDP III document. These were drawn from the government Ministries, Departments and Agencies, and Training and research institutions and the Private Sector.
FYDP III was approved by the Government involving Cabinet Secretariat, Inter-Ministerial Technical Committee (IMTC), Cabinet, Budget Committee and Parliament of United Republic of Tanzania.
FYDP III will be disseminated to all domestic and international stakeholders through FYDP III books, digital platforms as well as dialogue forums such as interviews and seminars.
1.5. The Layout of FYDP III
The FYDP III is organised into eight chapters. Following this introduction, Chapter Two reviews the results from implementation of FYDP II and draws implications for the way forward. Chapter Three dwells on the development of a competitive Private Sector in the country. Chapter Four presents FYDP III’s conceptual framework for building a competitive and industrialized economy for human development as well as clarifying on the relevance and linkages of the five priority areas of FYDP III. Chapter Five brings together specific interventions needed to realise FYDP III goals. Chapter Six is on financing FYDP III implementation. Chapter Seven presents arrangements for implementation of FYDP III while Chapter Eight covers monitoring and evaluation.
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2 REVIEW OF IMPLEMENTATION OF THE SECOND NATIONAL FIVE-YEAR DEVELOPMENT PLAN 2016/17-2020/21 2 CHAPTER TWO REVIEW OF IMPLEMENTATION OF THE SECOND NATIONAL FIVE-YEAR DEVELOPMENT PLAN 2016/17-2020/21
2.1. Overview
This chapter highlights the evaluation of performance of the National Five-Year Development Plan 2016/17- 2020/21 (FYDP II). It presents results from the assessment of FYDP II implementation against set objectives, targets and performance indicators and provides insights on the achievements as well as, challenges to inform FYDP III strategic interventions. Analysis is organised as follows:
Section 2.2 presents macroeconomic performance. It covers growth (GDP) performance, inflation, external balance stability (foreign exchange reserves and exchange rate), fiscal performance and analysis of external debt. Section 2.3 covers performance by sector, including agriculture, livestock, construction, energy, mining, trade, tourism and industrial development (mainly manufacturing). Section 2.4 is on human capital development and social services, covering education, health and safe water and sanitation improvements. The chapter further includes narratives on trends in poverty and inequality, gender and women empowerment under section 2.5.
Section 2.6 covers two related dimensions of investment/business climate: ‘enabling environment’ which covers improvements in physical infrastructure (roads, railways, marine transport) and soft infrastructure (ICT - related), and ‘business environment’ which focuses on private sector facilitation, Public-Private Partnerships (PPP) and governance and accountability. Section 2.7 makes a short assessment of the financing of FYDPII and Section 2.8, the monitoring and evaluation (M&E) of FYDP II. Section 2.9 provides an analysis of the Strengths, Weaknesses, Opportunities and Challenges (SWOC) in Table 8. This is followed by Section 2.10 on a snapshot of performance of the flagship projects followed by a summary of overall performance, outstanding limitations and a way forward note in section 2.11
10 “Realising Competitiveness and Industrialisation for Human Development ” REVIEW OF IMPLEMENTATION OF THE FYDP II
2.2. Macroeconomic Performance
Growth of Gross Domestic Product (GDP): Tanzania has, over the past decade, continued to register robust economic growth coupled with a stable macro-economic environment that it has been enjoying since the turn of the century. Over the past decade, annual GDP growth was maintained at an average of 6 to 7 percent, peaking at an average rate of 6.9 percent between 2016 and 2019. Though impressive, the annual GDP growth rates are still lower than TDV 2025 targeted rate of more than 8 percent per annum, which was deemed necessary to eradicate absolute poverty and to take the country on a right path for realizing the ambitious objectives of the vision. Nevertheless, the country has been able to qualify as a lower middle-income country as of July 2020. According to the World Bank, Tanzania’s Gross National Income (GNI) per capita increased from TZS 2,225,099 (USD 1,022) in 2016 to TZS 2,577,967 (USD 1,080) in 2019, exceeding the lower threshold for middle-income status (USD 1,035).
Over the period of FYDP II implementation, growth was attributed to continued execution of major infrastructure projects, particularly in transport and energy sectors; measures taken by the Government to improve management of the mining activities aiming at streamlining operations and curbing illegal and un- der-declaration of minerals; enhanced efficiency in revenue collection and expenditure management; as well as improved performance of the agriculture sector due to favourable weather conditions.
The sectors with highest annual average growth rates between 2016 and 2019 were construction (14.4 percent); manufacturing (8.3 percent); transportation and storage (8.2 percent); mining and quarrying (8.0 percent); and information and communication (6.2 percent). The share of agriculture in total GDP declined from 29.0 percent in 2015 to 26.6 percent in 2019. The decline of the share of agriculture in total GDP and the corresponding rise in the shares of ‘modern sectors’ apparently confirms that structural transformation is taking place in Tanzania.
Inflation: The annual rate of inflation has remained in a single digit range, averaging of 4.4 percent over the past four years, slightly below the FYDP II projection of 5 percent per annum. Headline inflation declined from annual average of 5.2 percent in 2016 to 3.3 percent in 2020. Generally, the moderation has been on account of improved food supply in the domestic market and neighbouring countries, stability of global oil prices, and prudent fiscal and monetary policies.
Foreign Reserves and Exchange Rates: Over the last five years, the foreign exchange reserve levels have been sufficient to meet required imports, servicing external debt other external. For instance, as of December 2020, foreign reserves were USD 4,767.7 million, which were sufficient to cover 5.6 months’ imports of goods and services. This is above the national monetary policy goal of 4 months and the EAC target of 4.5 months. Good levels of foreign exchange reserves were attributed to the increase in the value of export of goods and services and low oil prices. The size of the reserve not only serves as a cushion against external crises, but also a signal that imbues confidence for potential investors and creditors. In addition, the reserves have enabled the Bank of Tanzania to manage unwarranted volatility in the foreign exchange market. Through close supervision of the interbank foreign exchange market operations and bureaux de change, the Bank was able to manage perverse trading behaviour of market players that would bring instability in the exchange rate and ‘speculative attacks’ on the currency.
As a result, the value of the Tanzanian Shilling (TZS) against major foreign currencies has remained relatively stable. According to the Bank of Tanzania’s Annual Report for 2019/20, while end of the period exchange rate for 2016/17 was TZS 2,230.1 to one USD, the end of the period rate for 2019/20 was TZS 2,295.5 to one USD.
11 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
The stability of the exchange rate is a result of the combination of effective management of fiscal and monetary policies and keen supervisory practices of the Central Bank in enforcing transparency and efficient trading in the foreign exchange market. Other factors contributing to the stability of the exchange rate include a decrease in the current account deficit and low inflation relative to the rates of inflation in Tanzania’s major trading partners.
Fiscal Performance: Domestic revenue has been increasing consistently though below the set annual target. In 2019/20, domestic revenue realized was 13.7 percent higher than the amount collected in the previous year but was 8.6 below the annual target. In addition, domestic revenue as percentage of GDP increased from 13.4 percent in 2015/16 to 14.7 percent in 2019/20. The increase in revenue collection was a result of implementation of various domestic revenue policies focusing on widening tax base, strengthening management of existing sources especially by intensifying the use of electronic collection systems and other administrative measures. Table 1 summarises tax policy reforms during the FYDP II.
Table 1: Tax Reforms during Implementation of FYDP II
Tax Reforms Objectives
During 2015/16
Income Tax Reforms- Government reduced PAYE • To reduce tax burden to low-income earners from 12% to 11% and the Government reduced • To induce voluntary compliance and reduce the rates applicable to presumptive tax regimes by business cost. 25 percent.
During 2016/17
Income Tax Reforms - Reduce PAYE from 11% to 9% To reduce tax burden to low-income earners
Excise Duty Reforms - Extend Excise Duty on To limit tax evasion and increase Government Mobile Money Services to include commission Revenue. payable from money withdrawal
VAT Reforms - Introduce VAT on fee based • To remove tax distortions and reducing Financial services supplied; Abolish Exemption exemptions. for Tourism Services and abolish exemptions to • To enhance tax base and Government revenue. the armed forces and instead, provide allowances as an alternative and suitable way to deliver the • To ensure fairness to all member of armed forces goods to them. and avoid loss of Government revenues.
Import Duty Reforms - Increase import duty rate To protect and promote local production of on cement from 25 percent to 35 percent; Increase furniture as well as promotion of employment and Import Duty on Furniture’s from 15% to 20% and to ensure fairness to all member of armed forces abolish exemptions to the armed forces and and avoid loss of Government revenues instead, provide allowances as an alternative and suitable way to deliver the goods to them
12 “Realising Competitiveness and Industrialisation for Human Development ” REVIEW OF IMPLEMENTATION OF THE FYDP II
Tax Reforms Objectives
During 2017/18
Excise Duty Reforms - Merge Annual Motor Vehicle To simplify collection mechanism, reduce Fees with Fuels Excise by undertaking a reform collection costs, making it convenient for taxpayers through the revising upwards the excise duty rates to pay tax, improve compliance rate; To recover on petrol and diesel by TZS. 40 per litre, from TZS Revenue loss from the reform on abolishment of 339/= to TZS. 379/= per litre of motor spirit. annual motor vehicles license fees
Income Tax Reforms - 5% Withholding Tax to To increase government revenue and correct Small Miners and Increase qualifying amount income inequality and strengthening collection of for depreciation of non-commercial vehicles Government revenue from gaming activities collecting all potential from Gaming Tax
During 2018/19
Income Tax Reforms - Reduce the Corporate • To promote investment in the manufacturing Income Tax rate from 30% to 20% for new entrants of pharmaceutical and leather products so as to in Pharmaceuticals industries and Manufacturers of create employment opportunities and increase Leather Products for a period of 5 years Government revenue. • To save foreign exchange which is currently being used for the importation of these products,
Import Duty Reforms - Increase the import duty To protect local industries. rate for Gap Sugar from 25% to 35%
Gaming Reforms - Increasing gaming tax from • To Increase tax revenue from casino games; 15% to 18% on Gross Gaming Revenue for • To Increase Government revenue from gaming land-based casino operations; Increasing gaming tax collections; tax from TZS 32,000 to TZS 100,000 per machine/ months on slot machines; • To Increase Government revenue from gaming tax collections; and Increase the rate of tax on sport betting from 6% to • To Increase gaming tax collections and thus 10% on Gross Gaming Revenue; Increase the rate of contributing more to the Government revenue Gaming Tax on Winnings from 18% to 20% for SMS Lottery, Sports Betting, Slot Machine Operations, National Lottery, Forty machines (Forty machines site), and online casino (Internet /online casino)
During 2019/20
Tax Reforms-To introduce Presumptive tax regime To reduce the tax compliance burden on small to taxpayers with annual turnover from TZS four businesses as well as to align the tax rates with million (4,000,000/=) and TZS hundred million the minimum amount of turnover required for (100,000,000/=) who will not be obliged to submit businesses to use Electronic Fiscal Device (EFD) financial accounts to Tanzania Revenue Authority machine. for determining income tax. (a) Proposal to introduce the turnover tax for PIT traders.
13 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
The reorientation of expenditure towards public investment reflects the Government’s commitment to narrow the infrastructure gap and thus facilitate private sector investment and economic growth. The aim of the fifth phase Government was to increase development spending to the tune of 30–40 percent of the total budget as articulated in the FYDP II to finance development projects. Development spending increased from 22.5 percent of the actual budget in 2015/16 to 31.4 percent in 2019/20. Budget dependency continued to be in single digit for the past five years with the ratio of concessional loans and grants averaging at 9.3 percent of the total budget in 2019/20. In GDP terms, development spending has increased to 6.3 percent of GDP (2019/20), up from 4.3 percent in 2015/16. Capital investments have been directed towards the construction and rehabilitation of health and education facilities, Government buildings in Dodoma, transport sector projects such as the standard gauge railway, the energy sector projects of Kinyerezi I&II, construction of Julius Nyerere Hydropower Project (JNHPP), and the construction, upgrading and rehabilitation of airports across the country.
The fiscal deficit narrowed from 3.4 percent of GDP in 2015/16 to 1.4 percent in 2019/20. It remains below 3 percent, which is the set target for macroeconomic convergence in the EAC and SADC. The deficit is financed through foreign and domestic borrowing. In the short to medium term, the deficit is expected to widen (but within the agreed target) as Government continues to implement major infrastructure projects such as the new standard gauge railway (SGR) and power infrastructure.
Financial Sector Performance: The Bank of Tanzania has continued to implement and sustain monetary policy which aims at increasing credit to the private sector. In this regard, the Bank of Tanzania reduced the discount rate from 12.0 percent to 9.0 percent and further reduced it to 5 percent in May 2020. Also, the Bank of Tanzania has continued to inject liquidity into the economy through different financial instruments in order to meet market requirements. These measures have improved liquidity in the money markets. In terms of interest rates on Treasury bills, the rates have been reduced from 17.49 percent in December 2015 to an average rate of 11.06 percent in December 2020. The overall time deposit rate has declined from 9.3 percent registered in December 2015 to 7.09 percent in December 2020.
For the past five years the banking sector has remained sound and stable with capital and liquidity levels being above minimum regulatory requirements. As of 31st December 2019, there were two private credit reference bureaux operating in Tanzania, namely Credit info Tanzania Limited and Dun & Bradstreet Credit Bureau Tanzania Limited. During this period, 55 out of 56 banking institutions were submitting data to the credit reference databank, which amounted to 98.21 percent of the financial institutions required to submit data to the CRB. By the end of 2019, the number of borrowers and loans submitted by banking institutions to the databank reached 5.22 million and 3.9 million, respectively. Also, the number of banking agents have increased from 3,299 agents in December 2015 to 28,358 agents in December 2019.The growth in the number of banking agents is reflected by the increase in the volume and value of transactions. The volume of cash deposits by agents was TZS 5,464.9 in billion in 2019 compared to TZS 28.37 billion in 2015 whereas the volume of withdrawals was TZS 1,833.1 billion and TZS 4.14 billion respectively. Total Market Capitalization of 28 companies listed on the DSE increased to TZS 19,676.92 billion in 2018, compared to Total Market Capitalization of TZS 16,464.3 billion recorded in December 2015. The number of companies listed at the DSE has also increased to 28 companies in 2018, compared to 18 companies in 2015, which is equivalent to a 55.6 percent increase.
Debt Sustainability: Tanzania’s national debt continued to be sustainable throughout FYDP II implementation period. All debt burden indicators show that Tanzania remains at a low risk of debt distress, with all relevant debt ratios below the thresholds for distress. The Composite Indicator (CI) calculated based on the October 2020 World Economic Outlook (WEO) for Tanzania is 3.07, indicating that the country’s debt-carrying capacity is strong. In nominal terms, the public debt was 39.0 percent of GDP in 2019/20. Debt Sustainability Analysis
14 “Realising Competitiveness and Industrialisation for Human Development ” REVIEW OF IMPLEMENTATION OF THE FYDP II
(DSA) 2020 results indicated that the present value (PV) of external (public and private) debt-to-GDP ratio in 2019/20 stood at 16.4 percent against the threshold of 55 percent and was projected to decrease moderately in the medium-term to long-term, reaching 14.0 percent by 2030/31. The long-term projection is supported by strong GDP growth and expected slowdown of borrowing after completion of major projects under the FYDP II. The present value (PV) of external debt-to-export is projected to decrease from 103.9 percent in 2019/20 to 81.2 percent in 2025/26 and thereafter to 68 percent by 2030/31. The liquidity indicators, as measured by the ratios of debt service to exports, is projected to decrease from 11.9 percent in 2019/20 to 11.1 percent in 2025/26 (Table 2).
Table 2: External Debt Sustainability Indicators
External DSA Threshold 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2030/31
PV of debt-to 55 16.3 17.3 17.5 17.9 17.9 17.2 16.7 14.0 GDP ratio PV of debt-to- 240 103.9 113.2 109.7 103.5 94.3 87.9 81.2 68.0 exports ratio Debt service- 21 11.9 14.0 13.4 10.6 10.3 10.7 11.1 11.1 to-exports ratio
Source: Ministry of Finance and Planning
The Debt Sustainability Analysis (DSA) suggests that overall risk of debt distress for Tanzania is low, reflecting the recent GDP rebasing and reclassification of the country from a medium policy performer to a strong policy performer, which raised its debt carrying capacity and accompanying debt burden thresholds. All debt burden indicators remain below the thresholds under stress tests.
Foreign Direct Investment (FDI): During FYDP II, Tanzania continued to invite foreign investors. The value of Foreign Direct Investments has been increasing over time (Table 3). The sectors (sub-sectors) that attracted FDIs include mining and quarrying, finance and insurance, food and accommodation, manufacturing and agriculture. Most of the FDIs1 originate from the Canada, Kenya, Germany, China, India, Mauritius, the Netherlands, Oman, South Africa, United Kingdom, the United Arab Emirates, and the United States.
Foreign direct investments (FDIs) bring in new capital, along with technical, managerial and networking capabilities. Among the concerns that feature frequently include the speed of investor facilitation and administration of incentives as well as the costs of obtaining permits (work, residence, building, licenses and approvals). At the Tanzania Investment Centre (TIC) which is a formal investment promotion agency, a One Stop Centre (OSC) was established, in order to make possible provision of (most of) the facilitation services by government agencies under ‘one roof’. This arrangement saves the investor’s cost in time and money by removing the need for moving from one MDA to another.
1 Not in order of shares
15 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
Table 3: Foreign Direct Investment between 2016 and 2019
Year 2016 2017 2018 2019
FDI (Million USD) 755.4 937.7 971.6 990.6
Source: Bank of Tanzania
2.3. Sectoral Performance
Agriculture Sector: The key targets were to attain real growth rate of 7.6 percent; GDP share of 29.4 percent; 24.9 percent share in total exports and share in total employment at 56.5 percent. Over the past four years, the sector has grown by an annual average of 5.1 percent, accounted for an average of 27.7 percent to GDP, 24.1 percent to export earnings and 65 percent of total employment. Cash crop production increased to 1,156,389 tonnes in 2018/19 (from 796,502 tonnes in 2015/16). Food crops production continued to flourish such that food self-sufficiency reached 118 percent. Exports of horticultural produces rose to USD 779 million in 2018/19 (from USD 412 million in 2015). Irrigated area increased to 694,715 hectares in 2020 (from 461,376 hectares in 2015). Food crops storage capacity increased up to 621,000 tonnes in 2020 (from 371,000 tonnes in 2015).
Most farmers/livestock keepers/fishermen still use very low technology and production and productivity is very low even by regional standards. Productivity is still low and so is the level of commercialization. According to the preliminary results of 2019/20 agriculture census only about 20 percent of the 13.5 ml. hectares planted used improved seed and only 2.8 ml. Hectares (about 20 percent) used mineral fertilizers.
Also, during implementation of FYDP II, the Government constructed new irrigation infrastructure and repaired the old irrigation infrastructure. This has led to an increase in the irrigation area, from 461,376 hectares in 2015 to 694,715 hectares in 2020. Until December 2020, the Government was continuing with the construction of irrigation schemes in Kigugu-Mvomero (200 ha); Mvumi – Kilosa (249 ha); Msolwa Ujamaa – Morogoro (675 ha); Njage – Kilombero (325 ha) and Shamba la Mbegu Kilangali – Kilosa (400 ha). Furthermore, production of quality seeds has increased from 36,614 tons in 2015 to 71,000 in 2020. The completion of construction of seeds laboratory in Morogoro has led to production of 14,700 kilograms of pre-basic rice/paddy seeds (TXD 306, TXD 88, Komboka, Tai, Supa and NERICA 1). The construction of five warehouses for storage of rice under Expanded Rice Production Project have been completed. Also, the availability of fertilizer has increased from 302,450 tons in 2015 to 727,719 tons in 2020.
Livestock: During the period under review the population of cattle reached 33.4 million, poultry (83.28 million), of which traditional chicken were 38.77 million and improved/hybrid chicken were 44.51 million; pigs (2.14 million) and donkeys (657,389). Improvements of private sector owned cattle ranches and investments in beef processing factories have started to flourish. Annual livestock vaccine production has increased from 26,367,200 doses in 2015/16 to 58,016,325 doses in 2019/20 equivalent to an increase of 120 percent. The incidence of animal diseases has decreased from 20 percent in 2015/16 to 11 percent in 2019/20 respectively. Also, livestock mortalities due to diseases have decreased from 352,726 in 2015/16 to 221,732 in 2019/20 equivalent to 37 percent decline. The decrease in the incidence of livestock diseases is due to the construction of 104 new dips and the rehabilitation of 542 dips. During the period under review, livestock subsector growth has been stagnated where the average growth was 4.9 percent. However, during 2020 the livestock sub-sector
16 “Realising Competitiveness and Industrialisation for Human Development ” REVIEW OF IMPLEMENTATION OF THE FYDP II
growth reached 5 percent. Furthermore, the contribution of livestock subsector to GDP has had inconsistence growth. However, during 2020, the contribution of livestock subsector to GDP was 7.2 percent.
Construction Sector: The construction sector has also consistently expanded its share of GDP. The sector’s GDP in 2019 share stood at 14.2 percent, which is 3.1 percentage points higher than the baseline of 11.1 percent and 3.0 percent points higher than the end of FYDP II’s target of 11.8 percent. Over the past four years, the sector has been growing by 14.3 percent per annum. The growth of the sector has been primarily driven by the works on the road network, buildings and mining industries. In the road network, for instance, the Government has made massive investment by tarmacking a total of 3,537.0 kilometres of roads between 2015/16 and 2019/20; rehabilitating 300.9 kilometres of trunk roads, and construction of 10 large bridges, airports and other infrastructures (e.g., health facilities, Government buildings in Dodoma, student hostels at the University of Dar es Salaam).
The formal construction sector has been growing at a fast rate; but along with it, informal construction (building of structures, mainly dwellings without contracts, for instance, in many urban and rural settlements). Like in most Sub-Saharan African countries, many large-scale infrastructure construction contracts have been awarded to foreign contractors. Generally, local construction firms face shortage of funds (capital) and technical and managerial capability to undertake most of the foreign-funded and large projects.
The fifth-phase Government has taken keen interest in encouraging domestic firms to enhance their technical capacity to compete along with global (large) players. The presence of large international firms (including also in mining and gas sub-sectors) offers scope for technology transfer and the development of local firms to explore opportunities for upgrading, taking advantage of the possible access to (new) technology (transfer). In the meantime, the Government has also spoken firmly against corrupt practices in the sector in order to have transparent operating environment in which domestic private companies can thrive.
Energy Sector: During implementation of FYDP II electricity generation capacity has increased to 1,602.3 MW in 2019/20 from 1,308 MW in 2015/16. The rate of electricity loss has also declined from 19.0 percent in 2015/16 to 16.4 percent in 2019/2020. The number of customers connected to the national grid reached 2,766,745 in 2020 from 1,473,217 in 2016 and an overall Electricity Access Rate has increased from 67.8 percent to 78.4 percent in the same period. About 99.6 percent of the total population in urban areas have access to electricity while households connected are 39.9 percent. The households electrified by solar photovoltaic technology are 30.4 percent. Access to electricity in rural areas has increased from 49.3 percent in 2016 to 69.6 percent in 2019/20. The number of villages with access to electricity has increased from 2,018 villages in 2015 to 10,018 villages in December 2020. Further, the number of rural households connected to electricity has increased from 16.4 percent in 2016/17 to 24.3 percent in 2019/20. The increase in access and connectivity in rural areas was attributed to, among others, the Rural Energy Agency (REA) programme. The Energy Access and Use Situation Survey in Tanzania (2019/20) shows that the main energy source for cooking is firewood (63.5 percent) followed by charcoal (26.2 percent), Liquefied Petroleum Gas (5.1 percent), electricity (3 percent) and other sources (2.2 percent). Likewise, there is an increase in the use of modern energy sources for lighting, whereby in 2020, about 36.3 percent of households are using electricity as the main source of energy for lighting compared to 25.1 percent in 2016. This is followed by solar power which is used by 30.4 percent of households and rechargeable battery/torch (23 percent). The traditional sources of energy for lighting from kerosene have decreased from 22.3 percent in 2016/17 to 6.4 percent in 2019/20. While four (4) percent of households use other energy sources for lighting.
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Mining Sector: During 2016 to 2019, the growth of mining sector has averaged 8.0 percent and its contribution to GDP has increased from 4.6 percent in 2015/16 to 5.9 percent in 2019/20. Also, revenues from export of minerals have increased from USD 1,912 (equivalent to TZS 4,464.71 billion) in 2015/16 to USD 2,898.8 (equivalent to TZS 6,769.0) in 2019/20 and non-tax revenues (fees and other charges) have increased from TZS 196 billion in 2015/16 to TZS 528.3 billion in 2019/20. The mining sector contribution have continued to increase since 2016/17 partly due to radical changes in extractive industry policies, rules and regulations, strategies that plugged the loopholes that hitherto hindered the flow of benefits out the natural endowments to the country’s citizenry.
Among the efforts and actions taken by the Government included construction of the wall at Mirerani (24 km long) to curb rampant smuggling of Tanzanite and establishment of mineral trading centres (39 centres) to enable orderly sales of minerals. Export of raw minerals was banned in preference for local value-addition processing. The 2017 legislation requires all minerals to be beneficiated in the country. In another bold move, in 2019, the Government was able to garner development agreements and issue of Special Mining Licences (SMLs) for Bulyanhulu, North Mara and Geita, Tulawaka and Buzwagi. In May 2017, new mines, Shanta Gold’s medium scale and New Luika Mine were opened, adding more firms in gold mining in the country. Also, the Government and Barrick established Twiga Minerals Corporation which is jointly owned by the Government (16 percent of shares) and Barrick (84 percent of shares). In 2019/20 Barrick disbursed TZS 100 billion to the Government as dividend. Other effort included Government partnership with LZ NICKEL Company to mine nickel minerals whereby Tembo Nickel Corporation Limited has been established where the Government owns 16 percent of shares and LZ NICKEL Company owns 84 percent of shares.
In terms of employment, between 2016/17 and 2019/20, the sector contributed 1,000,505 jobs, of which 809,696 (80.9 percent) were direct employment. The artisanal, small-scale mining sub-sector employs about 1.5 million people in rural areas, contributing not only to household income but also supporting Government’s efforts to reduce poverty particularly in rural areas.
Trade: In respect of trade there is an increased share of Tanzania’s exports to SADC from the baseline share of 12 percent (2015) to 14 percent (2019). The share of exports to EAC has declined from 16.0 percent (2015) to 12.3 percent in 2019. Other progress includes an increase in manufacturing exports to EAC from 6.3 percent (2016) to 10.8 percent (2019) which is 3 percentage points higher than the FYDP II’s target of 7 percent. The target for the share of exports to SADC has been surpassed reaching 26.4 percent (2019) against the target of 22 percent by 2020. Exports to EAC have increased from USD 430.6 in 2016 to USD 674.4 in 2019. In SADC, exports have increased from USD 1,112.7 in 2016 to USD 1,350.9 in 2019. The value of exports in SADC has increased due to increase in export of minerals compared to exports of manufactured goods.
Despite the recorded achievements realized in the period under review, trade sector encountered some challenges which are; Failure to meet international quality standards and or failure to compete, lack of information on availability of preferential markets, existence of non-tariff barriers especially along the border, lack of commitment/will by some private sector to meet the demands of specified markets, higher cost of doing business, lack of cold chain and storage facilities at the port and air ports for storage of manufactured and horticultural goods, lack of e-commerce skills and platforms and the onset of COVID-19 pandemic.
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Tourism Sector: The number of tourists increased from 1,137,182 in 2015 to 1,527,230 in 2019. Positive progress is also observed from the FYDP II’s indicator, ‘earnings from tourists.’ The earnings increased from the baseline figure of USD 1.9 billion in 2015 to USD 2.6 billion (equivalent to 6,071.3 TZS) by 2019 which is 36.8 percent increase from the baseline. Other achievements are an increase of licenced tourism operators from 1,242 in 2016 to 2,051 in 2020, also cultural tourism enterprises increased from 66 in 2016 to 76 in 2020. However due to the COVID-19 pandemic shock, the earnings are projected to significantly decline, and likely to fall short of the FYDP II’s target of USD 3.6 billion.
Industrial Development: The FYDP II identifies industrialisation, along with human development and implementation effectiveness, as the main policy objectives and a key driver of economic transformation. In 2016, the Government prepared an action plan for implementing FYDP II with regards to industrialisation. The strategy promoted the use of domestic inputs, improving an enabling environment for private sector investment and mobilisation of Foreign Direct Investments (FDIs). During the past four years of FYDP II 8,477 industries were established, of which 201 were large-scale, 460 were middle-scale, 3,406 were small and 4,410 were micro enterprises. Also, in 2019/20 alone, 303 industries were established, of which 138 were large establishments (95 established under Tanzania Investment Centre - TIC).
The establishment of these industries has led to the increase in the number of industries from 52,633 in 2015 to 61,110 industries in 2019. These establishments have increased the number of newly created jobs from 254,687 in 2015 to 482,601 in 2019. The contribution of industrial sector to GDP has increased from 7.9 percent in 2015 to 8.5 percent in 2019. The average growth of 8.3 percent in industrial sector has led to increases in the production of different manufactured goods. Overall, as of September 2020, Government achieved 75 percent of the targets set in 2015/16.
In pushing the agenda further, the Government called upon the Pension Funds to participate in industrialisa- tion by financing the revamping of manufacturing industries that had long stopped production and investing in new industries. In response to this call, over 35 industries were funded by the Pension Funds, creating 250,000 jobs. The major industries so established include: (i) An investment worth TZS 54 billion for a Shoe Factory in Moshi in cooperation with TIRDO and the Parastatal Pension Fund (PPF); (ii) A National Social Security Fund (NSSF) Joint Venture project for the construction of a 200,000 tonnes per year sugar factory at Mkulazi Prison in Morogoro; (iii) A TZS 9 billion NSSF loan to revive the Mwanza Milling Factory; and TZS 4.7 billion investment to expand the NDC Biotech Product in Kibaha; and (iv) Over TZS 339 billion have been invested by Pension Funds in 12 firms and several others.
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2.4. Human Capital Development and Social Services
2.4.1. Education
Implementation of the Secondary Education Programme II involved construction of vital infrastructures in 3,904 schools (3,021 primary schools and 883 secondary schools); 547 dormitories, 101 houses for teachers; 25 administration buildings and 43 libraries. Infrastructures across all education levels have been improved through renovations of old schools, strengthening teaching and learning infrastructures and renovation of colleges of education. Use of ICT in teaching and learning has been increase by procuring ICT equipment for the institutions which were rehabilitated. This has led to increased enrolment of students studying mathematics, science and ICT subjects. Out of 89 old schools, 84 schools have been renovated and infrastruc- tures in 54 Folk Development Colleges (FDC) have been improved.
During the implementation of FYDP II, the number of classrooms has increased from 115,665 in 2015 to 136,292 in 2020; desks from 3,024,311 desks in 2015 to 8,095,207 desks in 2020; primary schools from 16,899 in 2015 to 18,158 in 2020. Also, the number of secondary schools have increased from 4,708 schools in 2015 to 5,402 schools in 2020. In addition, the Government continued to provide higher education loans where a total of 2.26 trillion shillings was disbursed; continuing to fund leadership allowances for head teachers, student compensation and school operating grants where 1.22 trillion shillings was provided for funding free primary education; the establishment of vocational training centers in vocational education institutions; and the strengthening of technical colleges and universities. Similarly, 1,696 schools have been provided with science laboratory equipment. Of these, 1,625 are public schools (commonly known as Ward Schools) and 71 are the oldest schools.
Overall, the assessment revealed that the implementation of Second Five-year Plan 1contributed to: an increase in the number of students enrolling in vocational training from 196,091 in 2015/16 to 320,143 in 2019/20 and vocational education from 117,067 in 2015/16 to 151,379 in 2019/20; an increase in the number of students enrolling in universities in the country from 65,064 in 2015/16 to 87,813 in 2019/20; and an increase in the number of beneficiaries of higher education loans from 125,126 students in 2015 to 132,392 in 2020. In addition, the pass rate for Standard Seven examinations has increased from 67 percent in 2015 to 81.5 percent in 2019 and Secondary (Form Four) from 68 percent in 2015 to 80.7 percent in 2019. Similarly, higher education graduates reached 60,940 in 2019/20, 90,849 vocational training in 2018/19 and vocational education 86,547 in 2019/20. During the period of implementation of the Second Plan, an amount of 3.15 trillion shillings has been spent on improving the education sector. The indicators of the education sector are as follows:
Gross Enrolment Ratio: Gross Enrolment Ratio (GER) in pre-primary education declined from 112 percent in 2016 to 76.2 percent in 2020. The decline is a result of decline in the pupils eligible for enrolment. The GER in primary education has been steadily increasing over the years since 2016 and stands at 110.3 percent in 2019 compared to 91.3 percent in 2015. Similarly, in 2020, the Gender Parity Index (GPI) is at 1.01 meaning the numbers are closer in terms of male and female pupils. With regard to lower secondary education, the GER experienced an increasing trend from 36 percent 2016 to 43.9 percent 2020. The increasing trend, in an increasing population, indicates that more students are transitioning from primary to secondary education. The increase in enrolment in pre-primary, primary and lower secondary levels is mainly attributed to the implementation of “Fee-Free Basic Education Policy”, improving teaching and learning environment including rehabilitation and construction of infrastructures as well as strong partnership between Government, the private sector, Faith-Based Organisations (FBOs) and Community-Based Organisations (CBOs).
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Net Enrolment Ratio: The Net Enrolment Ratio (NER) in pre-primary experienced a declining trend as it decreased from 44.6 percent in 2016 to 38.7 percent in 2019. The NER for girls stands at 40.3 percent slightly higher than for boys at 39.6 percent as shown in Figure 1.0. This indicates that there is relative gender equity in enrolment of pupils in pre-primary schools. The huge increase in Net Enrolment in 2016 is no doubt due to the Government’s introduction of fee-free basic education. In the same vein, NER in primary education increased from 84.0 percent in 2016 to 95.4 percent in 2019; implying high participation of official school-age population in primary education. This reveals also that the contribution of both Government and Non-Government education stakeholders to improve access and equity in primary education is bearing fruit. However, the great majority of pupils are enrolled in Government schools, even though both Government and Non-Government schools have shown an increase in enrolment. Regarding lower secondary, NER increased slightly from 33.3 percent in 2016 to 34.8 percent in 2019.
Figure 1: Total Enrolments in Government and Non-Government Pre-Primary Schools by Sex, 2014-2018
00 000
600 000
Femal 00 000 en
200 000
0 201 2015 2016 201 201
Source: ESPR 2017/18
Pupils/Teacher Ratio: A Pupil Teacher Ratio (PTR) of 1:25 is considered optimum for pre-primary schools. The national PTR has improved from 1:114 in 2016 to 1:104 in 2020. This improvement is a result of an increase in the number of pre-primary teachers from 10,991 teachers in 2018 to 13,227 teachers in 2020. In primary education, PTR declined from 1:42 in 2016 to 1:56 in 2020. The decline in PTR is attributed to the decrease in total number of teachers by 5.8 percent from 206,806 in 2016 to 194,736 in 2020. However, the situation is expected to improve on account of the 13,000 newly employed teachers in October 2020.
Universal Secondary Education: The Government has made ordinary level secondary education universal. This is consistent with aspirations of the Education Sector Development Plan (ESDP) 2016/17-2020/21. The ESDP aimed at transforming the sector into an efficient, effective, outcome-based system and ensure equitable access to education and training for all, including the most disadvantaged in line with Sustainable Development Goal Number 10 (SDG 10). The priorities included equitable participation and completion of fee-free basic education for all, with particular attention to marginalized groups, children with disabilities and out-of-school children and completion of twelve years of education through universal access up to lower secondary education. As a result, GER increased from 30.1 in 2016 to 31.0 in 2018; and NER from 27.0 in 2016
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to 31.0 in 2018. Significant reduction has been achieved in school dropouts and out-of-school children. Outcomes in terms of improvement of schooling of both boys and girls due to adoption of universal secondary education are promising. The rapid increase in number of children in schools has generated pressure in terms of need for more classrooms, teachers, and expansion in budget. These factors are critical for protecting and raising the quality of teaching and learning going forward.
Technical and Vocational Education Training (TVET): TVET provides alternative educational and training opportunities after primary, ordinary secondary (O-Level) and advanced secondary (A-Level) education levels, aimed at producing artisans, technicians skilled workers, and professionals to be engaged in fields such as construction, manufacturing agriculture, mining, transport, energy and information and communication technology (ICT). There are two regulatory authorities responsible for TVET institutions: (i) The National Council for Technical Education (NACTE) which oversees quality assurance and quality control of technical education and training of all tertiary education institutions, (non-universities); and (ii) The Vocational Education and Training Authority (VETA) which oversees quality assurance and quality control of vocational education and training.
As of January 2019, NACTE had registered 540 Technical Institutions. The overall admission capacity for 2018/19 is 254,172 trainees. Currently, there are 603 institutions in the country, of which 28 are owned by VETA and have a total enrolment of 34,326 trainees. There are 575 Vocational Training Centres owned by non-government service providers. The total enrolment capacity for all VETA-registered Vocational Training Centres is 222,680. Folk Development Colleges (FDCs), currently numbering 55, offer folk education and vocational education and training programmes. FDCs equip trainees with knowledge and skills for self-employment and self-reliance and abilities to solve immediate problems in the communities. The main skills provided are in areas of agriculture, carpentry, masonry, mechanics, tailoring, cookery, animal husbandry, electrical installation and related fields. Currently, there are 5,783 artisans trained by FDCs in collaboration with other stakeholders.
The Government has carried out a number of interventions to improve quality, access and equity. These interventions include rehabilitation, strengthening and expanding of existing Infrastructures of TVET institutions. In the budget for 2019/2020, the Government has allocated funds for the construction of 25 District Vocational Training Centres. The Government has also completed the establishment of Centres of Excellence at technical levels, construction of technical colleges and rehabilitation of 54 Folk Development Colleges.
Skills Development: A study of the labour market conditions in the country by (then) Planning Commission President’s Office-Planning Commission (PO-PC) (2014), The Study on National Skills Development to Facilitate Tanzania to Become a Strong and Competitive Economy by 2025 shows the urgent need to address the mismatch between the level of skills employers look for in job seekers, on the one hand, and the levels of skills job seekers possess as acquired in the course of education and training. The study points out that most employers in the public and private sectors report that the levels of skills of many of the job seekers fall short of the required standards. Notably most job seekers are found to have low ‘soft skills’. Here, low soft skills mean weaknesses in communication skills, lack of self-confidence, lack of innovativeness/creativity, inadequate self-drive in problem solving, leadership, and slow capacity to adapt or put knowledge in practical terms, time management, customer attention and, above all, attitude towards work and teamwork.
The POPC study set sight on the skills required to meet the goals of the respective; development plans in the context of the Long-Term Perspective Plan (LTPP) - on (revitalizing) industrialization (FYDP II) and a competitive economy (FYDP III) in short. The study further made inferences from ‘success cases’ of India, South Africa,
22 “Realising Competitiveness and Industrialisation for Human Development ” REVIEW OF IMPLEMENTATION OF THE FYDP II
Malaysia and Singapore on what occupations that Tanzania ought to make a big push on, before 2025 as it aims to attain the middle-income status. The following implications can be drawn from the study: (i) The skills development shall be continuous learning, right from nursery schools in order to prepare the youth for higher levels of education and vocational training for them to be employable and above all, self-employed and job creators themselves; (ii) In addition to addressing the soft skills gaps, the country has to make a big-push on high skills occupations (managers, professionals, associate professionals and technicians): these need to be increased by about five-fold and medium skills occupations (clerks, service workers, crafts and trade workers and skilled agricultural workers) to be increased by three-fold, on average. (iii) That most of the occupations (about 80 percent) in Tanzania require knowledge in mathematics and sciences while trends in enrolment in these subjects are low, and declining, compared to, for instance, to enrolments in social science subjects; hence, the need for increased/continued government funding for, and encouragement of, more enrolments in mathematics, natural sciences, medical sciences, engineering sciences; (iv) That while the likelihood for self-employment is best for those with technical/vocational skills, there were fewer enrolments in technical and vocational education and training (TVET) institutions compared fast-rising enrolments in degree-offering programmes in recent years. Whichever channel, however, between TVET and ‘higher-degree’ education, soft skills remain a challenge that must be addressed as confirmed by the employer surveys. Equally important is the need to address gender barriers in promoting employable skills particularly for youth, women, and people with disabilities. (v) That the analyses of the employment trends (official labour surveys, employer surveys and a few tracer surveys of the training institutions) indicate that the private sector creates more jobs than the public sector. It may be deduced, therefore, that the prospects for meeting FYDP III’s target of 8 million jobs lie in, among other actions, addressing the skills gaps through interventions that enhance chances of self-em- ployment which are mainly through the TVET channel. (vi) That there is a need to establish more technical and vocational education and training (TVET) colleges, and strengthening teaching in these colleges (curricula, teaching and learning facilities and materials); (vii) That ‘ease of doing business’ interventions, along with funding arrangements and technical assistance on basic business management skills, will enable more enterprising TVET graduates to initiate own-workshops/businesses and create jobs; this will have a desired side-effect of attracting more informal sector operators to formalise their operations; hence, expand the formal sector with spin-off benefits of creating further employment; (viii) That it is important to encourage TVET colleges as well as higher learning institutions to regularly carry out graduate surveys (tracer surveys), develop closer relationships with industry (private sector mainly), since this is where the majority of employment opportunities are to be found. In so doing, both channels of training (TVET and higher learning/degree-offering) will update their curricula according to what the labour market demands.
The proportion of individuals entering the workforce with tertiary education has steadily increased from one percent in 2007 to three percent in 2016. However, highly skilled workforce continues to be low, at 3.3 percent compared to the national target of 12 percent. There is a mismatch between output of higher education institutions and labour market needs, related to curricula that lack direct linkages to industry and are inadequate or outdated. The private sector in Tanzania has indicated great interest of partnering with the Government in skills development through the social investment platform.
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The vertical and horizontal mobility of the county’s labour is greatly limited since most of the labour force has low levels of skills. There are concerns about a high volume of low skills and low volume of high skills, relative to what is needed for sustainable industrialisation. Demand for higher level skills is rising across all economic sectors. To address the skills gaps and skills mismatch, the Government in collaboration with other stakeholders has developed the National Skills Development Programme to provide a framework for enhancement of skills development and employability.
Through the National Skills Development Programme, on average, 42,407 youth in the labour market are trained in different skills per year through apprenticeship, internship, and Recognition of Prior Learning (RPL) skills. The programme focuses on the key priority sectors of manufacturing, hospitality, textile, leather, agriculture, construction, and ICT. In addition, the Government continues to offer subsidies through Trainee Voucher Scheme to 7,000 youth under vocational education and capacitate institutions which supervise quality of vocational education training; ensuring availability of teaching and learning materials for internship courses in all colleges; and developing National Internship Guidelines and National Apprenticeship Guidelines for Government and private sector.
Youth Empowerment: Various initiatives have been taken to ensure youth are economically empowered, these include; provision of training to 28,390 youth on entrepreneurship education, business administration and formalization of youth owned business companies. Furthermore, a soft loan worth 32.6 billion has been issued to 2,560 youth groups. To make sure the youth are properly up brought, a total of 78 National Training of Trainers on Life Skills were trained and ultimately facilitated training of 12,500 Peer Educators at district levels. Life skills education at different levels is important to prepare the youth towards self-identification, vision setting and rational decision making.
2.4.2. Health Sector
During implementation of FYPD II the number of health facilities in the country has increased from 7,014 in 2015 to 8,783 facilities in December 2020. The Government constructed 1,198 new dispensaries, 487 health centres, 99 District Council Hospitals, 10 referral hospitals in Geita, Katavi, Simiyu, Njombe, Songwe, Mwanza, Shinyanga, Singida, Manyara, Arusha and Mara. Also, the Government continued with construction of three Zonal Referral hospitals (Southern Highlands Zone Referral hospital-Mbeya; Southern Zone Referral hospital in Mtwara and Lake Zone Referral hospital in Geita-Chato). Also, the Government completed the rehabilitation of Ward number 18 (Sewa Haji) and construction of wards for private patients at Muhimbili National Hospital. The construction of emergency services building and renovation of X-ray building in Dodoma Referral Hospital has been completed. Also, the construction of Uhuru hospital in Dodoma is 98.2 percent complete.
Performance of other indicators in the health sector is as follows:
Maternal mortality, Neo–natal Mortality and Under-five Mortality: Tanzania’s under-five mortality rate is declining at an encouraging rate, followed by infant mortality rate. This is due to the improvements made in health services delivery across the country. Under-five mortality rate has declined from 67 per 1,000 live births in 2015/16 to 50 per 1,000 live births in 2019/20. Tanzania has continued to be one of the leading countries in Africa in vaccinating children under one year. In 2019/20, 98 percent of all children under-one-year-old were vaccinated compared to 82 percent in 2015/16, thus exceeding the 90 percent target set by the World Health Organisation (WHO). Also, during 2019/20, 81 percent of all pregnant women made four (4) or more visits at antenatal clinics compared to 39 percent in 2015/16 implying that more pregnant women receive quality care
24 “Realising Competitiveness and Industrialisation for Human Development ” REVIEW OF IMPLEMENTATION OF THE FYDP II
and advice on safe birth control methods. The number of pregnant women giving birth at health facilities increased from 64 percent in 2015/16 to 83 percent in 2019/20.
Population Dynamics: Total fertility rate was recorded at 4.9 births per reproductive woman in 2019, a decline from 5.2 births per woman recorded in 2016. One of the consequences of the high fertility rate amidst rapidly declining mortality is that Tanzania’s population grows at a relatively high pace, and heavily youthful, with children between 0-14 years old constituting about 44 percent of the total population. The 2012 Census revealed that Tanzania age dependency ratio was 92, implying that there were 100 people in age 15–64 supporting 92 persons in age groups 0-14 and 65 years and above. The high child dependency burden has important ramifications for economic productivity. Parents with many children tend to struggle to provide for quality health, education, nutrition, emotional and other needs of their children, which undermines the quality of human capital in the next generation of the workforce. High fertility rate is also associated with low levels of female education and limited participation of women in the formal labour market. This implies that high fertility rate causes high dependency ratio which increases the burden of care and lower workforce participation particularly for by women and girls.
Governments in high fertility countries also struggle to provide quality education and health services for children and have limited resources available for investing in development infrastructure and other enablers of economic growth. As noted in the 2006 National Population Policy and Five Years Development Plan (FYDP) II, rapid population growth and the high dependency burden are the key factors undermining socioeconomic development in Tanzania. These policy documents note that rapid population growth retards growth in national output by slowing the process of capital formation, as increased consumption draws resources away from saving for productive investment. The strains caused by rapid population growth are felt most acutely and visibly in the public budgets for health, education and other human resource development sectors.
Stunting and Wasting Prevalence: Tanzania National Nutrition Strategy has continued to guide nutrition issues, aimed at reducing all forms of malnutrition. The nutrition situation among children under-five years has improved. The percentage of children under the age of five underweight has decreased from 13 percent in 2014/15 to 10 percent in 2019/20 while children born underweight at less than 2.5 kg has also declined from 6.5 percent in 2014/15 to 5.6 percent in 2019/20.
Prevalence of HIV: The prevalence of HIV/AIDS in the country shows a declining trend following improved prevention strategies, intensified HIV testing and counselling programmes as well as social and behavioural change programmes countrywide.
Tuberculosis Incidence: Tuberculosis has continued to be among the top causes of death in the country. During 2019/20, 92 percent of TB patients were treated and recovered compared to 90 percent who were treated and recovered in 2014/15. In addition, participatory TB and AIDS services have improved and HIV testing for TB patients has reached 99 percent in 2019/20, up from 93 percent in 2014/15.
Malaria Incidence: Malaria deaths in all age groups have decreased by 67 percent from 6,311 in 2015 to 2,079 in 2019. Out of 2,079 deaths for the year 2019, under-five accounts for 957 deaths (46 percent) of all malaria deaths. The confirmed cases of malaria have been registered to increase from 2015 to 2019 due to constant availability of diagnostic facilities especially malaria Rapid Diagnostic Tests (mRDTs). The introduction of Malaria Service and Data Quality Improvement (MSDQI) package has also increased the performance of the health facilities on malaria indicators.
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2.4.3. Coverage of Health Insurance Schemes
The National Health Insurance Fund (NHIF) is a vehicle for accessing quality health services for all. As of March 2019, the Fund had registered 4,217,211 beneficiaries, equivalent to eight percent of the Tanzanian population. The number of NHIF members increased from 753,892 in 2016/17 to 858,446 in 2017/18 and to 966,792 in 2018/19. NHIF beneficiaries were equivalent to 7.4 percent of all Tanzanians, while Community Health Fund (CHF) beneficiaries were 23.6 percent of all Tanzanians. By 2019 the CHF had covered 13,029,636 beneficiaries, equivalent to 25 percent of the Tanzanian population. Hence, the combined coverage of NHIF and CHF between 2015 and 2019, increased from 20 percent to 33 percent. Tanzania is now reviewing its Insurance Act 2019, with a view to establishing a Single National Health Insurance (SNHI) fund, and thus replace the current NHIF and CHF systems.
2.4.4. Access to Sources of Safe Water and Improved Sanitation
The Government, in collaboration with various stakeholders, has continued to implement water supply projects in rural and urban areas. Between 2015 and 2020, a total of 1,423 water supply projects were constructed with the cumulative number of 131,370 Water Points (WP) benefiting 25,359,290 people, equivalent to 70.1 percent of the rural population. However, basing on WPs functionality, out of 131,370 constructed only 86,780 (65.06 percent) were functioning, 8,481 (5.9 percent) were functioning but needed repair, 32,109 (24.44 percent) were not functioning and 5,888 (4.6 percent) were abandoned. This shows that more focus is required on sustainability so as to ensure the little resources available are utilized effectively to achieve high impact. Reviving the non-functional water points shall be a priority rather than starting new projects. In the urban areas, the proportion of population with access to piped or protected water source reached 80 percent. Investments in the water sector including the Rural Water Supply and Sanitation Programme (RWSSP) explain the observed improvements
2.5. Poverty Reduction and Economic Empowerment
2.5.1. Human Development Index, Status of Poverty and Inequality
Human Development Index: Tanzania’s Human Development Index (HDI) has improved from 0.52 in 2015 to 0.528 in 2018, above the average of 0.507 for countries in the low human development group. When the HDI is disaggregated into its components, it is evident that the country has made substantial achievement in life expectancy (from 63.1 years in 2015 to 66.0 years in 2019) and literacy rate has also improved whereby Expected Years of Schooling have gone up from 5.3 in 2010 to 8.0 in 2019 and Mean Years of Schooling have gone up from 5.1 years to 6.0 years over the same period. Other human development indices that show major improvements include: Gender Inequality Index - improved (declined) from 0.556 in 2013 to 0.539 in 2019 and Gender Development Index - the Gap in HDI between women and men has remained stable at around 0.936 over the period 2015 to 2019.
Poverty Status: Analysis of Household Budget Survey (HBS) indicates that the incidence of basic needs poverty has declined from 28.2 percent in 2011/12 to 26.4 percent in 2017/18 whereas food poverty has declined from 9.7 percent in 2011/12 to 8.0 percent in 2017/18. This is a result of continued efforts by the Government in improving living conditions, social welfare, poverty reduction and improvement in human development outcomes. Access to basic services and to productive assets such as improved lighting sources, increased access to roads, markets and water, health and education are the factors behind such outcomes.
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Like previous surveys, the analyses of the 2017/18 HBS shows that the incidence of poverty or poverty headcount index for basic needs poverty in mainland Tanzania is still higher in Rural Areas (31.3 percent) than in Urban Areas (15.8 percent).
National Multidimensional Poverty Index: Tanzania like many other countries is set to develop a national MPI for assessing multi-dimensional poverty levels in the country context for sharper policies to eradicate poverty. The methodology for computing NMPI has been developed. It is expected that the first NMPI for Tanzania will be computed and launched using data from the HBS 2017/18. In addition, the intention is to develop a standard set of questions to be included in the national surveys for facilitating measurement of the NMPI over time. This will enable monitoring of the dimensions/indicators chosen for the country over time. In this regard, having NMPI from time to time during implementation of FYDP III will enable assessment and monitoring of poverty related indicators to be included in the FYDP-III Monitoring and Evaluation Strategy/plan.
Inequality: The 2017/18 Household Budget Survey (HBS) showed a rise in consumption inequality from the Gini coefficient of 0.34 in 2011/12 to 0.38. The rise was also observed in Other Urban Areas category from 0.37 to 0.38. Inequality in Dar es Salaam rose from 0.35 to 0.42 and for Rural Areas, rising from 0.29 to 0.32. In this case, there is more inequality among the individuals in Dar es Salaam (0.42) than in Other Urban Areas (0.38) and Rural Areas (0.32). This is attributed to the fact that most individuals in rural areas migrate to Dar es Salaam, to take advantage of the industrialization and rising urban incomes. A part of the migration stream may be formed by lower-income individuals that are mostly unskilled and illiterate. These people mostly have individual concerns and mostly they move into the informal urban sector. The disparities in poverty levels in Tanzania suggest that interventions to fight poverty need to be tailored at Local Governments level especially regions and districts depending on the nature and levels of poverty. Table 4 below shows trends of inequality in mainland Tanzania, Dar es Salaam, urban area and rural area.
Table 4: Trends of Inequality in Mainland Tanzania
Year Dar es Salaam Other Urban Area Rural Area Mainland Tanzania
1991/92 0.30 0.35 0.33 0.34
2000/01 0.36 0.36 0.33 0.35
2007 0.34 0.35 0.33 0.35
2011/12 0.35 0.37 0.29 0.34
2017/18 0.42 0.38 0.32 0.38
Source: 2017-18 HBS
The rise in inequality (as from the HBS 2017/18) calls for in-depth policy actions aimed at overcoming the structural forces that create and perpetuate inequality, and efforts to accelerate progress towards poverty reduction which, in turn, ought to be part of the development processes.
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2.5.2. Employment Creation
In recognition of the scale of unemployment and its potential impacts, during 2016/2017–2018/2019, the Government, in collaboration with stakeholders, has implemented employment-creation policies, programmes and projects to empower youth in terms of wage employment and self-employment. Also, the Government increased resource allocation towards capital (loans) for the youth, women and People with Disability (PWD). The development projects such as construction of Standard Gauge Railway (SGR), road construction, construction of 487 health centres and 101 hospitals, construction of airports; construction of 1,143 water projects; and establishment of industries in every region – all have been creating an estimated 1,167,988 new jobs during the period between 2016 and 2019 (Table 5).
Table 5: Jobs Created by Main Sectors from 2016/17 to 2018/19
Main Sectors Number of Jobs Created
Public 112,645
Development Projects 663,227
Private 451,464
Total 1,167,988
Source: Administrative Data, PMO-Labour, Youth, Employment and Persons with Disability.
According to the data in Table 4 above more jobs were created in the private sector compared to the public sector, implying the significance of the private sector in fighting poverty through employment creation. The increase in the number of jobs created means more people are employed, social protection improved and the number of people who are marginalized reduced.
2.5.3. Gender Equality and Women Economic Empowerment
Women participation in various spheres is vital in ensuring sustainable development in achieving gender equality and eliminating gender-based violence. The Ministry of Health, Community Development, Gender, Elderly and Children, in collaboration with PO-RALG, has continued to implement various programmes to empower women with the aim of increasing economic opportunities and building business capacity, access to capital, markets and credit facilities. Between 2015/16 and 2019/20, a total of TZS 63.49 billion were provided to 938,802 women entrepreneurs in various Local Government Authorities in the Country as depicted in Table 6.
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Table 6: Trend of Loans Issued to Women Entrepreneurs
Year Loans Issued Number of Groups No. of Women Funded Entrepreneurs Funded
2015/16 3,388,747,160 2,225 21,167
2016/17 8,816,700,165 5,899 772,245
2017/18 16,319,517,502 6,852 39,449
2018/19 11,128,114,993 4,898 44,210
2019/20 23,836,238,260 6,859 61,731
Total 63,489,318,080 26,733 938,802
Source: PO-RALG
The Government has also continued to provide soft loans to women entrepreneurs through the Women’s Window established at the TPB Bank. In 2019/20, loans worth TZS 3.586 billion were offered to 14,271 women as compared to TZS 2.05 billion issued to 3,035 women entrepreneurs in year 2018/2019. In addition, entre- preneurship training has been provided to 718 entrepreneurs including 334 women and 384 men in Dodoma, Mwanza, Geita and Mbeya regions. Training has enabled women to attain skills on how to increase value of the products, capital share, market research, savings and financial management which implies improved welfare and hence, reduction of poverty.
2.6. Interventions to Foster Investment
In this section, enabling environment refers to measures undertaken by Government to improve ‘hard infrastructure’ and soft infrastructure (ITC-based), as well as interventions that attract private investors. Most of these are financed by the Government since they are large in scale and need large capital investment (often larger than private companies can readily venture into) (sub-section 2.6.1); while in sub-section 2.6.3, business environment covers administrative facilitation, public-private partnership arrangements and policies that the Government has implemented in order to ensure smooth, transparent and corruption-free environment for investment and trade.
2.6.1. Improvement of Hard Infrastructure
Roads: Between 2015 and March 2020, the Government constructed 3,537.0 km of paved roads, and 82.6 km for decongesting traffic in urban areas. By June 2020, 1,298.44 kilometres of paved roads were under construction, some 300.9 km of trunk roads had been rehabilitated. Construction of twelve (12) large bridges had been completed namely, Magufuli, Magara, Kavuu, Ruvu Chini, Mlalakuwa, Momba, Lukuledi, Lukuledi II, Mara, Sibiti, Mtibwa and Nyerere (Kigamboni). Construction of five (5) bridges are in progress namely: Tanzanite Bridge, Mitomoni, Wami, Kitengule and Ruhuhu. Other major bridges which were then under mobilisation for works include Kigongo – Busisi (now under construction), Sukuma, Simiyu, Mkenda, Mtera, Godegode, Malagarasi Chini and Ugalla. Among the successfully completed projects, by 100 percent or nearing that mark
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within this year includes; the Manyoni - Itigi road (245 km), Masasi-Songea-Mbinga section of the road leading to Mbamba Bay (less than 20 km remaining by October 2020), TAZARA Flyover and Ubungo Interchange (Completed and already in use). Highly advanced projects likely to be completed before June 2021 are the Tanzanite Bridge, Itoni-Ludewa road, and Tabora-Mpanda road.
Railways: Standard Gauge Railway (SGR): The Government is constructing a USD 7.6 billion Standard Gauge Railway (SGR) along the central corridor. The implementation started since 2017 with two slots between Dar es Salaam and Makutupora in Singida region. The first slot covers a total of 300 km between Dar es Salaam and Morogoro. The second slot covers a total of 422 km between Morogoro and Makutupora. The construction between Dar es Salam and Morogoro has reached 90 percent, and the construction of 422 km between Morogoro and Makutupora has reached 49.2 percent.
Rehabilitation of the Metre Gauge Railway (MGR): The Government through Tanzania Railway Corporation (TRC) is implementing Tanzania Intermodal and Rail Development Project (TIRP) with an aim of delivering a reliable open access infrastructure on the Dar es Salaam-Isaka (970 km) section of the central railway line. The focus is on the rehabilitation to achieve a minimum permissible axle load capacity of 18.5 tons per axle, re-laying of 970 km of railway line from Dar es Salaam to Isaka with 80 pound/yard rail and procurement of rolling stock. The planned major maintenance for the central railway between Dar es Salaam and Isaka (970 km), the slot of Dar es Salaam – Kilosa (283 km) had reached 94 percent and Kilosa – Isaka (687 km) had reached 99.8 percent by 2020. The Government has also constructed Mwanza and Shinyanga Inland Container Depots in order to facilitate cargo handling. Also, the Government has successful revived the Dar es Salaam – Tanga and Moshi-Arusha railway lines which were not operational for the past 30 years.
Railways Transport Facilities: The Government strived to ensure that existing Metre Gauge Railways operates efficiently and effectively. Steps taken include re-manufacturing of 14 shunting locomotives; rehabilitation of 347 freight wagons, 20 commuter coaches and 13 long distance passenger-coaches; and procurement of 44 container carriers, 22 new passenger coaches and three (3) new locomotives.
Ports: Tanzania has three (3) major seaports (Dar es Salaam, Tanga and Mtwara), three (3) minor seaports (Kilwa, Mafia and Lindi) and three (3) major lake ports (Mwanza, Kigoma and Itungi - Kyela). The Dar es Salaam Port is the largest port in Tanzania. The cargo handled by Dar es Salaam Port has increased by an average of 26,463 metric tonnes per annum, from 14.8 million tonnes in 2014/15 to 14.9 tonnes in 2018/19. The positive trend is attributed to the ongoing modernization, deliberate business environment reforms, deployment of new and modern cargo handling equipment as well as an increase in daily working hours at the port from 12 to 24 hours.
The Government has also constructed the Kwala Dry Port in Pwani Region to decongest Dar es Salaam Port at a cost of TZS 35 billion. Investment has been done in cargo handling equipment and scanner. The Tanga port has been under expansion that included dredging the quay to allow larger vessels to anchor as well as rehabilitation of warehouses at Berths No.1 and No.2. Its capacity has been increased by 700,000 tonnes to 1,200,000 tonnes per annum. Rehabilitation, fendering and cathodic protection to Quay No.2 was implemented between September 2016 and June 2017. The Port of Mtwara was expanded to increase its capacity from 400,000 to 750,000 tonnes. Works included expanding concrete surface by 600m2 as well as construction of a 300 metres long berth that had reached 61 percent by June 2020. On Lake Victoria berths have been constructed in Lushamba, Ntama, Magarini, Mwigobero, and Nyamirembe. On Lake Tanganyika a berth has been constructed in Kagunga; in Lake Nyasa berths have been constructed in Kiwira and Itungi.
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In terms of marine transport facilities, the Government has built two cargo ships (MV Ruvuma and MV Njombe) with capacity to carry 1,000 tons each and one multi-purpose vessel (MV Mbeya II) with the capacity of 200 passengers and 200 tons on Lake Nyasa. On Lake Victoria, old ships like MV Victoria and MV Butiama have undergone major repair and currently they are operational. Also, construction of a new ship with a capacity of 1,200 passengers and 400 tons cargo.
Air Transport: In the aviation industry, the National Carrier (Air Tanzania) was revamped. Eight (8) aircrafts were procured and received between 2016 and 2019, with three (3) additional aircrafts expected to be delivered in the near future. The acquisition of the aircrafts has been undertaken in conjunction with the construction, rehabilitation and expansion of regional (domestic) and international airports. As a result, number of flights has increased from 225,103 in 2015 to 292,105 in 2019 bolstered by increase in flights frequency per week of major airlines in the country (ATCL; 6 to 30, Rwanda Air; 9 to 14, and Precision Air; 17 to 19). Passenger traffic have also increased, from 4,207,286 passengers in 2016 to 4,268,896 in 2018.
2.6.2. Development of Soft Infrastructure
A total of 27,912 km of National ICT Broadband Backbone has been constructed which 7,910 km were constructed by the Government. Similarly, several measures have been taken to ensure all stakeholders, including the private sector and the public at large, benefit from access to these public assets so as to promote socio-economic development. In particular, ICT services have been strengthened through laying down submarine cable. By April 2019 mobile communication coverage was 94 percent in terms of population and 66 percent in geographical coverage. These developments have greatly transformed lifestyles among the population especially access to both communication and mobile financial services. Nonetheless, capacity building remains essential to encourage all stakeholders to use ICT at home, at school and in business. Improvement in ICT is also expected to improve learning outcomes as well as enhancing activities in agro-business value chain.
2.6.3. Business Environment
Tanzania is ranked 141 among 190 economies in the Ease of Doing Business report. According to the latest World Bank annual ratings, Tanzania’s rank shows an improvement from 144 in 2019 (Table 7). The ranking indicates that Tanzania has not achieved the goal of double-digit position.
Table 7: Tanzania’s Position in the Ease of Doing Business Reports (2015-2020)
Year 2015 2016 2017 2018 2019 2020
Position 131 139 132 137 144 141
Source: World Bank (2020)
The Government has undertaken a number of measures towards improvement of the business environment. These include the following: (i) Streamlining the procedures for obtaining various permits and other services with the view to reducing the cost of doing business. Between 2017/18 and 2020/21, a number of fees and penalties related to
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agricultural and livestock subsectors were abolished through Finance Act. Further, the mandate for administration of food and cosmetics was moved from former TFDA (now TMDA) to TBS in order to remove the duplication of mandates. In 2019/20 a total of 60 different fees and charges related business licenses, permits and registration certificates including inspections which were administered by the FCC, BRELA, TBS, OSHA, and Fire and Rescues levies were abolished; (ii) Various institutions have introduced electronic systems in delivering services. These include Online Registration Systems for registration of companies, business names, trade and service marks, patent rights and industrial licenses; Online Business Licensing through National Business Portal; Tanzania Electronic Single Window System (TeSWS) for simplification of cargo clearance at the ports and other border posts; Online issuance of licenses and permits by OSHA, TMDA, TBS, NEMC and Ministry of Agriculture, Ministry of Natural Resources and Tourism; introduction of GePG for payment of fees, penalties; and introduction of Online Passport, VISA and work and resident permit; (iii) The Government has established One Stop Boarder Posts at Rusumo, Mutukula, Holili, Kabanga, Horohoro, Sirari, Namanga and Tunduma in order to simplify cargo clearance; (iv) The number of roadblocks along the central corridor has been reduced from 15 to three (3). The reduction of roadblocks has reduced time and cost in transportation of transit goods; (v) Improving the One Stop Centre at TIC by increasing the number of institutions operating under the centre to 11.
Despite efforts to drive reforms with a view of achieving a vibrant economy, several policy and regulatory hurdles have persisted. In the light of this, the Government in collaboration with private sector formulated Blueprint for Regulatory Reforms to Improve Business Environment and subsequently prepared the Blueprint Implementation Roadmap for Improving Investment Climate. The Roadmap will be supported by a robust monitoring and evaluation framework along with the robust communication strategy intended to inform and engage both public and private stakeholders.
2.6.3.1. Private Sector Facilitation
The Government recognizes the important role played by the private sector in implementing FYDP II. The private sector invested in different projects including in value-addition manufacturing industries.
The Government played a facilitative role of promoting the private sector through following initiatives: (i) Established one-stop facilitation centre under TIC which houses more than ten (10) Government institutions and agencies providing access to various services related to permits, licenses and approvals to local and foreign businesspeople, as well as investors to shorten time of going around individual offices. As of February 2020, total of 146 projects worthy of USD 1,514.57 million which are expected to provide more than 26,384 employments were registered; (ii) Recognition of private property and protection against any non-commercial risks. Tanzania is an active member of the World Bank Group Foreign Investment Insurance wing, the Multilateral Investment Guarantees Agency (MIGA). Likewise, Tanzania is a member of the International Centre for Settlement of Investment Disputes (ICSID), also affiliated to the World Bank Group; (iii) The Income Tax Laws provides for 50 percent capital allowances in the first year of use for Plant and Machinery used in manufacturing processes and fixed in a factory, fish farming; or providing services to tourists and in a hotel.
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(iv) Zero percent (0 percent) import duty on project capital goods, computers and computer accessories, raw materials and replacement parts for agriculture, animal husbandry and fishing, human and livestock pharmaceuticals and medicaments, motor vehicle in a Completely Knocked Down (CKD) form and inputs for manufacturing pharmaceutical products; (v) VAT Exemption on import of goods by a registered and licensed explorer or prospector for the exclusive use in oil, gas or mineral exploration or prospection activities; (vi) Reduced Corporate Rate for a New Established entity dealing with manufacturing Pharmaceuticals, leather and sanitary pads; and The Government in cooperation with Tanzania Private Sector Foundation has established an online complaints and feedback platform to help improve business environment in the country. The platform will start operating in financial year 2020/21.
2.6.3.2. Public Private Partnership (PPP)
In facilitating and supporting private sector participation in Public-Private Partnership (PPP) projects, the Government has strengthened applicable legal and institutional frameworks. Specifically, the Government has amended the Public Private Partnership Act, CAP. 103 with a view of making better provisions for supervision and co-ordination of public private partnerships. It has also strengthened the institutional structure for coordinating PPP Programme. This includes placement of PPP programme under the Ministry of Finance and Planning. The aim is to simplify and fast-track approval of PPP projects. The Ministry of Finance and Planning has built a vibrant PPP-enabling environment to assist Government institutions to prepare PPP projects. Other initiatives include recapitalization of the Tanzania Investment Bank and establishing a window for long-term finance in the Tanzania Agricultural Development Bank.
Given that the enabling PPP environment is in place, Government institutions are expected to aggressively use the PPP instrument to finance projects that qualify to use the PPP route in line with the PPP legislation. The readiness to use PPP instrument is growing because of enactment of the Public Private Partnership Act, CAP 103. Pipelines projects under preparation have grown from 5 projects in 2018 to over 49 projects by December 2020. The projects are in various stages of implementation in line with the requirements of the PPP legislation 103. Success factors for PPP to be a viable financing instrument include enhanced political will at all levels, commitment and compliance on the established PPP Life Cycle that includes avoiding reversal to traditional procurement for approved projects to go through the PPP Route instead and strengthening of institutional arrangements including the PPP Centre. Other factors include Public Private Partnership Fund (to facilitate project preparation, viability gap funding and capacity building).
2.6.3.3. Good Governance and Accountability
Corruption and Rule of Law: During the implementation of FYDP II, the Government has continued to fight corruption with efforts being directed towards addressing various dimensions of corruption including political and bureaucratic corruption, public funds embezzlement, fraudulent procurement practices, and judicial corruption. Some of the actions taken during this period includes: (1) establishment of the Corruption and Economic Crimes Division in the High Court of Tanzania. This initiative has also introduced heavy penalties in all corruption-related cases to serve as a deterrence; (2) Construction of the National Electoral Commission (NEC) building; (3) Renovation of three High Courts (4); Completion of construction of five resident magistrate
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courts (5); Completion of construction of 15 District Courts; (6) Completion construction of 18 Primary Courts;(7) Construction of Government buildings in Dodoma and establishment of Public Prosecutor Office and office of the Solicitor General. During FYDP II implementation the number of corruption cases ruled have increased from 10.4 percent in 2015/16 to 82.0 percent in 2019/20.
Review has also revealed that the fifth phase Government has improved integrity of public servants by reducing the level of corruption through: leadership commitment and political will; automation; enforcement of ethics and anti-corruption laws and regulations; investigations; disciplinary actions against corrupt public servants; and regular changes in different MDAs, RSs and LGAs including the leadership positions whenever things go wrong. The Government is striving to instil a general sense of discipline and accountability in the public service.
Additionally, the Prevention and Combating of Corruption Bureau (PCCB) established Public Expenditure trucking of development projects through District and Regional Offices and Asset Tracing and Asset Recovery Unit, which is responsible for tracing and recovery of assets or funds corruptly acquired. Progress made by PCCB in fighting against corruption is summarized in table 8.
Table 8: PCCB Corruption Cases Statistics, 2015/16–2019/20 Category received Allegations Files Investigation Completed under Ongoing Files Investigations Files Investigation Closed DPP to sent File filed into Cases New courts Ongoing cases into courts cases Conviction recorded cases Acquitted recorded ruled Cases Total Asserts/funds (billion) recovered
2015/2016 7,303 788 3,525 34 336 443 578 249 275 524 53.9
2016/2017 7,452 956 2,818 103 575 435 602 159 234 393 14.68
2017/2018 8,724 906 723 78 467 495 624 178 118 296 70.3
2018/2019 8,234 894 1,160 15 388 497 672 206 135 341 82.8
2019/2020 13,313 1,079 1,380 72 443 586 633 267 114 381 96.02
Source: PCCB Annual Reports and Website
The trend of new cases filed in courts from 2016 to 2020, and number of cases prosecuted portrays the efforts and emphasis that the PCCB has taken in fighting corruption. These efforts enabled Government to recover around TZS 215.45 billion between 2016 and June 2020. According to Transparency International Corruption Perception Index, Tanzania’s score has improved significantly from 32 scores in 2016 to 37 scores in 2019. A country’s score can range from zero to 100, with zero indicating high levels of corruption and 100 indicating low levels.
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2.6.4. Peace, Security and Political Stability
National development and prosperity depend upon peace, security and political stability. In order to ensure a country, have peace, security and political stability a number of strategic reforms has to be undertaken to include legal sector policy reforms and criminal justice system reform in a country;
Public Leaders’ Ethics: During implementation of FYDP II, as a way to promote good governance and instil a culture of accountability among public leaders, the Government has directed its efforts towards enhancing compliance to public leaders’ code of ethics through amendments of the Public Leaders Code of Ethics Act-PLCEA (2016); amendment of principal regulations to the functioning of the Ethics Tribunal; enactment of two new regulations, namely: Conflict of Interest Management (March, 2020) and Public Leaders Integrity Pledge (November, 2020). In addition, during the period under review, the declaration rate of public leaders’ assets and liabilities has increased from 86 percent in 2015 to 98 percent in 2019. Similarly, complaints submitted to the Secretariat on public leaders’ misconduct related to breaching of PLCEA has moderately declined.
2.7. Assessment of Financing of the FYDP II
The FYDP II Financing Strategy was expected to mobilise TZS 136 trillion. Out of the total amount, TZS 82.4 trillion was expected from traditional sources (e.g. revenues, grants and donations, and concessional borrowing) and TZS 53.3 trillion from non-traditional sources (e.g. bonds). The evaluation has revealed that the Government achieved the targets of collecting tax revenue by 98 percent. The domestic revenue as percentage of GDP increased from 13 per cent to 15 per cent. On the other hand, borrowing from non-con- cessional sources was more than twice the target, reaching TZS 12.2 trillion compared to the target of TZS 5.7 trillion. Borrowing from concessional sources was also above the target, reaching TZS 10.2 trillion from the target of TZS 6.2 trillion (64 per cent higher than the target).
The implementation of FYDP II was estimated to cost TZS 107 trillion, equivalent to an average of TZS 21.4 trillion annually for each of the five-year period. The public sector was expected to contribute about TZS 59 trillion, with the private sector expected to invest TZS 48 trillion. Implementation of FYDP II for the first four years revealed that public sector contributed TZS 34.9 trillion, equivalent to 76.5 percent of the four-year target of TZS 45.6 trillion. On the other hand, FYDP II review has revealed that the overall private sector investment to the economy had reached TZS 152 trillion. Further, the evaluation revealed that private sector direct investment to FYDP II priority areas for the past four years amounted to TZS 32.6 trillion, equivalent to 85 percent of the four years estimate of TZS 38.4 trillion. Main areas invested by the private sector include industrial development, private schools, hospitals, hotels, mining, transport and logistics.
2.8. Monitoring and Evaluation of FYDP II
The assessment of the implementation of the Monitoring and Evaluation Strategy (MES), one of the catalytic tools of implementing FYDP II targets and indicators set in 2016/17 show that despite having a well elaborated MES with strategic objectives, realistic interventions and indicators, the strategy and its interventions were not implemented fully. However, MDAs, RS, and LGAs have been applying M&E in projects being implemented outside the FYDP II. For FYDP III therefore, there is a need to revisit institutional arrangements and flow of tasks. Further improvements in the collection of routine data system will add relevant information into the system for tracking progress and enhance evidenced-based planning, policy and decision making at central and local levels of Government. Improvement of monitoring and evaluation will be done together with the improvement of the communication of FYDP III..
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2.9 Strengths, Weaknesses, Opportunities and Challenges (SWOC) of the FYDP II
Table 9 shows the forward-looking assessment of the strength, weaknesses, opportunities and Challenges that emerge and have to be drawn upon in the course of implementing FYDP III.
Table 9: SWOC Analysis after Evaluation of FYDP II
Strengths Weaknesses
i. Political will, peace and stable political atmosphere; i. Low human capital development: low STI capacity; ii. Abundance of natural resources – land, wildlife, minerals, low specialised skills in the forestry- high potential for diversification extractive industries iii. Presence of legal and institutional framework for ii. Problems related to investments arrangements; disaggregated data availability iv. High economic growth averaging 7.0 percent over the last for planning and monitoring; five years; iii. Weak Monitoring and evaluation v. Lucrative investment potentials in the sector - oil and gas, iv. Low private sector development electricity generation and distribution projects; and engagement vi. Agribusiness opportunities in the agricultural sector; v. Low per capita incomes vii. Opportunities for expansion in the infrastructural sub- sector: aviation, construction industry (roads, railways, ports, real estate, ICT backbone; viii. Strategic geographical location linking land-locked countries (EAC, SADC markets), rest of the world; ix. Long littoral (coastal) line with ecosystems for ‘blue’ livelihoods activities x. A high growing population which offers labour force, growing middle class as domestic market assured
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Opportunities Challenges i. Possibilities of improving enabling environment for t i. Exogenous shocks- instability small firms’ growth and survival, furthers agricultural within the region; transformation, and reduced vulnerability to negative ii. Climate change domestic and international economic and weather shocks; iii. Natural calamities ii. Emerging signs of increased participation of the poor in the growth process (like taxpayers’ cards for small businesses iv. Pandemics (Machinga); opportunity if formalisation succeeds. v. Global and regional geo-political iii. Further macroeconomic stability and economic diplomacy instabilities (e.g. China Trade War, to win external market and attract foreign investments; regional political conflicts) iv. Availability of Investment Guides for regions and LGAs with information of industrial and human development opportunities; v. Fertile areas and irrigable land vi. Improved market infrastructures to support agriculture production; vii. Blueprint initiative that identifies list of cross-cutting reforms; viii. Infrastructure development for Special Economic Zone (SEZ)/EPZ located in border regions ix. Global and regional markets (e.g., SADC, EAC, AfCFTA)
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2.10 Status of Flagship Projects
Table 10 presents a snapshot of the progress on the selected FYDP II flagship projects. This is to keep an even closer watch on the prospects for timely completion and especially impression on the capacity to have them adequately financed, including for the Operation& Maintenance.
Table 10: Flagship Projects
No. Flagship Project Implementation Status
1 Construction of Standard SGR implementation started since 2017 comprising of two Gauge Railway slots between Dar es Salaam and Morogoro (300km) and Morogoro and Makutupora, Singida (422km). The construction between Dar es Salam and Morogoro had reached 91 percent, completion is expected in early 2021, and the construction of 422 km section between Morogoro and Makutupora, Singida have reached 61.0 percent.
2 Construction of Julius Nyerere Construction of the power plant is in progress and the status Hydro-electric Power Project is as follows: Main dam (6.72 percent); Diversion Tunnel is in 2,115 MW progress and it is in final stage of completion; construction of Waterfalls (8.54) Tunnel Concrete Lining and Coffer dam is at 90 percent of completion. In general, construction works have reached 25.8 percent of completion.
3 Mchuchuma and Liganga The Government has taken an initiative to operationalize Projects Mchuchuma and Liganga projects which have vast deposits of coal, vanadium, titanium and iron. So far, the valuation of properties belonging to people living within areas of the project has been conducted, and a total of TZS 11.037 billion is expected to be paid as compensation to 1,145 people. On the other side, the Government and the Investor are in the process of reviewing the contract and other legal issues concerning the project.
4 East African Crude Oil All the preparatory work for EACOP have been done and the Pipeline (EACOP) from Hoima implementation of the project will commence once contractual (Uganda) to Tanga-Chongo- arrangements between participating companies are finalised. leani port (Tanzania)
5 Revamping of National Carrier The Government in the period between 2016 and December (Air Tanzania) 2020, procured and received eight (08) aircrafts. In addition, three (03) more air crafts have been ordered and are expected to be delivered in the near future.
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2.11 Overall Performance and Emerging Issues
2.11.1 Overall Performance
The overall assessment of the implementation of FYDP II reveals that the country performed very well in maintaining macroeconomic stability. About 93.8 percent of macroeconomic targets were met. In terms of Industrial sector performance of about 75 percent of the targets were met. Contribution of manufacturing sector to GDP increased to 8.5 percent in 2019 up from 7.8 percent in 2016. The sector also recorded an annual average growth of 8.3 percent in the same timeframe. Some 8,477 industries were established by June 2020, creating some 482,601 new jobs. In the manufacturing sector the set targets for FYDP-II were achieved by 66.6 percent. The interventions in the agricultural sector and sub sectors during FYDP II resulted in positive performance for attaining about 77 percent of set targets. The sector’s real growth rate increased by an average of 5.1 percent in the past four years of implementing FYDP II. In mining sector all targets (100 percent) set during FYDP II were met. Annual growth in Mining sector increased to 17.7 percent in 2019 from 6.9 percent in 2015/16, while share of the sector to GDP increased from 4.9 percent in 2016 to 5.2 percent in 2019.
The share of Tanzania’s exports to SADC has increased from 19.0 percent in 2015 to 24.5 percent in 2019. In tourism sector significant success were observed whereby, the number of tourists visiting Tanzania reached 1,510,151 in 2019 from 1,137,182 in 2015), accompanied with increased number of nights spent per tourist from 10 days in 2015 to 13 days in 2019. Earnings from tourism increased from USD 1.9 billion in 2015 to USD 2.6 billion in 2019. The overall performance for the targets of the infrastructure and services development was 91 percent. This has been attributed to achieving outcome targets during the FYDP-II implementation. Also, assessment has revealed that individual interventions that have attained almost 100 percent or more include connecting public institutions to e-Government (247 percent), increase in people using internet (177 percent), ports position in global ranking (105 percent), and regions connected to electricity (95.7 percent).
Overall performance in social services was high whereby about 70 percent of the planned targets were fulfilled as evidenced by the reduction of infant and under five mortality rates to 38.4 percent and 53 percent per 1,000 births, respectively; maternal mortality rate reduction by 25.7 percent, and increased births attended by skilled workers overall, Tanzanian’s life expectance increased from 61 to 66.7 years. Access to water supply has increased to 85 percent in Dar es Salaam, 80 percent in Regional Headquarters and 64 percent in District Headquarters. The proportion of households using protected water source in the rainy season and during dry season reached 88 percent and 77 percent, respectively. The proportion of households with any toilet facility has reached 93 percent. The targets set for water and sanitation had been attained by 80 percent by December 2018. In the education sector achievements are mainly in respect of rolling out of fee-free education policy, construction of classrooms, increased enrolment into teachers’ colleges, supplying teaching equipment, laboratory equipment and ICT. Also, Gender Parity in education enrolment has improved from pre-primary to Ordinary level. In terms of governance, during implementation of FYDP II there was a significant increase in the number of women in the parliament.
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2.11.2 Implementation Challenges
During implementation of FYDP II a number of challenges were encountered. These somewhat slowed down the implementation of development projects. The challenges are technical/operational and financial in nature; others are sector-specific, and others cut across all sectors, mainly concerning institutional capacities and legal and regulatory frameworks. The second category of challenges are those that specifically relate to implementation effectiveness.
Challenges Faced by Sectors The most common sector-specific challenges are conveniently listed under ‘sector-groups’ with a caution that the degree to which they affect the individual sectors differ, and that at more detailed technical/technology related issues differ widely.
The following are worth highlighting: (i) Productive sectors (agriculture, construction, manufacturing): low levels of technology application; insufficient storage and value-addition facilities; high costs of production; and inadequate availability of inputs and raw materials; financing (capital) for investment; (ii) Industrial development: low skills levels, knowledge and capability-building need to be improved through vocational/technical training, apprenticeships etc.; inadequate capital; low commercial banks credit. Industrial credit accounts for 10.5 percent while the largest share of credit is given to personal loans which account for 27.4 percent followed by trade at 20.5 percent) and Low FDI flow due to increasing of domestic investment in areas where FDIs flows were previously attracted as well as global shocks; (iii) Infrastructure sectors: inadequate capacity and capability of the local construction industry; rapid technological changes including security threats; unplanned urbanization; and lack of regular and efficient maintenance mechanisms; and (iv) Social services: Limited access, equitable and quality especially in remote rural areas; and
Limitations to Implementation Effectiveness (i) Delays in Execution of Implementation Strategy: The FYDP II Implementation Strategy came into action in 2017 two years after endorsement of FYDP III. Implementation Strategy involved four documents i.e., FYDP II Action Plan, Monitoring and Evaluation Strategy, Financing Strategy and Communication Strategy. Delays in the execution of these important tools led to delays in the implementation of some of the activities and projects; it also affected the measures put forth in mobilising resources to finance FYDP III; (ii) Difficulties in Compiling Information on Private Sector Investment: It has been a challenge to document information regarding the contribution of private sector on plan implementation as there is no proper methodology to capture private sector contribution. For the projects that have been identified in FYDP II, the turn up for private sector investment was not impressive and the information of the interventions and businesses conducted by private sector were sporadic, which that made it difficult to make informed decision on the magnitude of their investments; (iii) Weak Preparation of Projects: Project preparation starts from the moment the idea is conceived. Many sectors do not have an adequate number of personnel with sufficient expertise on to prepare the projects. As a result, most of the projects were too poorly developed to attract finances from domestic and international funders;
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(iv) Unsteady Flow of Funds for Development Projects: Timely disbursement of funds for development projects has adversely affected by factors such as long negotiations with lenders, circular nature of revenue collection, lengthy procurement and untimely disbursement of funds from DPs. For such reasons, some institutions have failed to utilize the funds on time. The other scenario is increased cost of implementing the projects due to delays of payments for the certificates raised by the contractors; (v) Private Sector Involvement in Financing and Implementation of development interventions: Despite the significant contribution of the private sector to the economy during the implementation of FYDP II, there are number of challenge which limit the direct participation of private sector in financing and implementation strategic and priority projects of FYDP III; (vi) Availability and quality of data: one of the major concerns found during the implementation of the FYDP II is relates to availability and quality of data. In some cases, datasets are incomplete, making it difficult to make precise analyses of trends and projections.; and (vii) Weak M&E Reporting at All Levels: Lack of an integrated M&E framework was an impediment to measuring actual impacts of development at all levels. This made it difficult to identify critical issues that needed deeper analysis and right policy responses in a timely manner. There is lack of capacity to synthesize information that is collected for timely strategic decision-making and accountability. Overall, there is inadequate human resources capacity with respect to staffing and specific technical expertise to identify and disaggregate available data by locality and socio-economic groups. Coordination, management and reporting of new data among multiple partners involved in implementing the national policies need to be improved. With each sector doing its own M&E, consolidating of the reports becomes tedious and may sometimes be ignored.
2.12 Way Forward
Maintaining Macroeconomic Stability: Macroeconomic stability requires interventions, which address balance in fundamental macroeconomic variables such as inflation rate, exchange rate, interest rate, balance of payments, fiscal deficit, and external debt, promotion of external trade as well as effective management of both demand- and supply- side can ensure economic stability. One of the key factors for a stable macro economy is expanding the scope for tax and non-tax sources of domestic revenue. Macroeconomic management shall pay close attention to possible exogenous risks and trade practices that may destabilise external balance stability.
Improving Quality of Service is Critical: With regard to social services, investments dedicated to quality-of-service improvements have to be implemented. This is far from suggesting that quantity (e.g., coverage, outreach, etc.) is no longer a concern. There will remain a need for better, more precise planning and forecasting of “quantity”, that is, an optimal number of physical facilities and distribution of the same in the country as total population rises. Examples include construction of school/college buildings, health facilities and equipment, sanitation/ sewers etc. This is important since quality also depends on the state and adequacy of the physical facilities.
Skills development interventions: Human resources capacity is a cross-cutting challenge in terms of both level of staffing and quality (proficiency) across sectors. Sectors have to devise short and medium-term training programmes to fill up positions with the right competencies. However, as noted in the Introductory chapter, this will best be pursued through concerted skills development interventions involving partnerships linking: (i) technical and vocational education and training (TVET) and higher-degree programmes, with more emphasis on the former, that is, the TVET channel; (ii) Government; and (iii) the private sector (industry) and other non-state actors, mainly the Faith-based, community-based and civil society actors.
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Improving engagement framework with the private sector: During the FYDP II, the political commitment and stance on promoting private sector investments is strong and clear. The major bottleneck is translating these political and policy directives into follow-up actions or implement them to the letter at all relevant levels of government (central, regional, local). There will be a need to revisit the strategies for productive inclusion of domestic investors-small and medium scale-in the competitive economy and accelerate the pace of formalisation of the informal sector.
42 “Realising Competitiveness and Industrialisation for Human Development ” 3 PROMOTING PRIVATE SECTOR AND NON-STATE ACTORS’ PARTICIPATION IN ECONOMIC DEVELOPMENT 3 CHAPTER THREE PROMOTING PRIVATE SECTOR AND NON-STATE ACTORS’ PARTICIPATION IN ECONOMIC DEVELOPMENT
3.1. Overview
This chapter builds a case for a transformative participation of the private sector and non-state actors in the competitive economy as a catalyst for sustaining Tanzania’s middle-income status and improved human development. The chapter adopts a backward and forwards approach to examining private sector and non-state actor’s participation in the competitive economy. This includes a situational and institutional appraisal of the status quo vis-à-vis aspirations of FYDP III. Analysis offers a basis for creating effective coordination and regulation of transformative private sector development and participation in the national economy. This chapter offers guidance to stakeholders on the development of a willing, ethical and engaging private sector, capable of defining, reproducing and repositioning itself within the evolving middle income economy. The chapter, therefore, calls for joint efforts to increase the growth and dynamism of the private sector and non-state actors, increase formality, enhance good governance, improve private sector exploitation of trade and investment opportunities, and increase sustainability of private sector and non-state actors’ activities. These will in turn facilitate economic growth, employment, competitiveness, and human development.
3.2. The Private Sector in Tanzania
The United Republic of Tanzania has been undertaking private sector reforms since the mid-1980s. These reforms have geared at facilitating the withdrawal of Government from active economic production and redirecting its resources and energy towards the maintenance of law and order, provision of social services and creating a conducive business environment and investment climate, with a view to increase private sector participation in the economy. During the 1990s, the private sector grew quite rapidly from its nascent stage consequent to the policies of economic liberalization and structural adjustment, which included the divestiture of State-Owned Enterprises (SOEs) and financial sector reforms. Over the past 10 years, its
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expansion has been characterised by substantial inflows of FDIs into the extractive industry. There have been limited FDIs inflows into broad based inclusive sectors, in particular agriculture and agri-business.
The private sector landscape in Tanzania includes many actors including small farmers; livestock herders; mini, micro, small and medium scale entrepreneurs; social entrepreneurs, commodity, and services brokers, and associations of various entrepreneur groups. However, the domestic private sector is dominated by informal businesses. The 2012 National Baseline Survey of Micro, Small and Medium Enterprises, estimates that 4 out 5 private sector workers are informal activities. Mini enterprises involve one to three people. Micro enterprises are those engaging up to 4 people in most cases family members, employing capital amounting up to 5 million-and having a turnover of TZS 12 million per annum. About 54.3 percent of MSMEs are women-led businesses. Most mini and micro enterprises fall under the informal sector. They also include survivalist enterprises; whose income generation is less than the minimum income standard or poverty line. Often there are no paid employees and asset value is minimal. Examples here include vendors, brokers, itinerant traders, and hawkers. Mini and micro enterprises tend to have low survivability and are difficult to target and difficult to serve.
This structure reflects a private sector generally constrained by four major problems: (i) Pervasive informality of the private sector, some 4.3 million households are employed in the informal sector, often with inadequate access to support services and decent work opportunities. (ii) Unsustainable private sector participation, the average lifespan of small businesses in Tanzania is 4.1 years, meaning that most private sector establishments tend to be short-lived further exacerbating their economic vulnerability. (iii) Weak legal framework which confounds key functional features of private sector operations aimed at enhancing the registration of property, easing access to credit, protecting minority investors, paying taxes, trading across borders, and enforcing contracts. (iv) Weak competitiveness of private sector, with many private sector actors unable to adequately respond to market demand through prices and quality, which restricts their participation in domestic and international markets.
Despite the above generalised bottlenecks, the private sector recorded a 68 percent increase in capital formation in 2016 - 2019, creating some 716,624 jobs largely driven by renewed Government commitment to private sector development. The implementation of private sector friendly policies has led, among others, to the expansion of the private sector, improved contribution to the economy, increased private investment, employment creation, technology and skills transfer, and entry of foreign actors into the economy. Achievements recorded include the increase in private capital formation to TZS 41.8 trillion in 2019 from TZS 24.9 trillion in 2016, and a growth in the private sector stock of foreign investment to US$ 16.2 billion in 2018 from US$14.6 billion in 2016. Tanzania’s private sector has been at the vanguard of economic transformation in with its share of non-farm employment increasing to 30.2 from 21.9 percent in the period 2006-2016. This increase is responsible for much of the decline in the real share of agriculture to GDP from 28.4 percent in 2006 to 26.6 percent in 2019.
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Despite the private sector’s increasing contribution to economic growth and employment creation, informality has prevailed and reduced the trickledown effect of this growth. Discounting agriculture (which is predominantly informal), the National Integrated Labour Force Survey (ILFS 2014) estimates that the informal sector employs some 21.7 percent of all workers in Tanzania. Informality refers to an absence of legal recognition of existence. Informality is often characterized by, among others, limited access to: - capital, legal protection of employment and incomes, irregular pay, poor working conditions etc. The International Labour Organization (ILO) contends that informality is among the primary contributors to the denial of decent work opportunities. The MSME Survey 2012 estimates that only 3.9 percent of all non-farm MSME in Tanzania are formally registered. Further, the ILFS 2014, found that employment in the informal sector has increased by nearly three-folds from 1,682,383 workers in 2006 to 4,344,580 in 2016. In relative terms, the informal share of non-farm private sector employment increased from 46.1 percent to 71.8 percent. Indeed, ILFS 2014 found that the monthly median earning in the informal private sector was TZS 120,000 compared to TZS 220,000 in the non-farm formal private sector, and TZS 500,000 in the public sector.
3.2.1. Participation in Agriculture
Tanzania’s economy has continued to be dominated by Agriculture. Agriculture employs about 66.3 percent of Tanzania’s workforce. Much of Agricultural production lies in the private sector. Research indicates that for the period 1960 to 1970, the private sector through small holder farming and small-scale commercial farms sustained 90-96 percent of the minimum food security in the country. Following agricultural market reforms of the 1990s, food production reached 100 percent of the FAO the food security requirement. However, while the private sector has sustained food security over a long period of time, it is still producing for subsistence.
Apart from supporting food security the private sector has been behind a steady rise in cash crop production. Tanzania’s main export cash crops are tobacco, cashew nuts, coffee, tea, cloves, cotton, and sisal. Cashew nuts, responsible for 75 percent of livelihoods of over 700,000 households, is Tanzania’s most important exported cash crop and its contribution grew to USD 353.1 million in 2019 from USD 201 million in 2016, followed by coffee whose exports grew to USD 153.4 million from USD 109 million in the same period. With increased support through an enabling production, marketing and export environment backed by improved awareness of standards, increased access to capital, acquisition of new knowledge on production, storage, processing, packaging, logistics, quality assurance and marketing, the private sector which is behind all this success can increase its share of the local and foreign markets in agricultural products.
3.2.2. Participation in Other Productive Sectors
The National Census of Industrial Production, 2013 published in 2016 (CIP 2013) indicates that the private sector accounts for 99.6 percent of all industrial production in Tanzania, through either sole ownership (99.5 percent) or public private partnership (0.1 percent). The private sector’s participation in industrial production primarily focuses on the manufacturing of: - food products (39.9 percent); wearing apparel (27.0 percent); and furniture (13.8 percent). Consistent with the enhanced industrialization drive of Tanzania’s long term perspective plan (LTPP), there is scope for increased private sector growth and diversification in the manufacturing of value-added consumables such as fabricated metal products, textiles, leather and related products, rubber and plastics, and pharmaceutical products. Therefore, given the necessary support, both large and small-scale enterprises have a big potential to become the epicentre of the new industrialization drive.
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Against this background, this chapter critically examines the bottlenecks and constraints facing the private sector, outlining relevant interventions to align private sector engagement with strategic economic development processes as reflected in FYDP III.
3.3. The Non-State Actors in Tanzania
There are over five thousand registered non-governmental organizations in Tanzania working on the different areas of human development, economic development, and environmental protection. The non-state actors (not-for profit private sector) has been playing a historically important role in supporting in the delivery of many key social services, particularly health, education, and training. As of 2020, the not-for profit private sector owns approximately 50, 40 and 25 percent respectively of higher learning institutions, primary health, and education facilities in the country. The sub sector has also been an early pioneer of Public Private Partnerships with several establishments benefitting from both direct and indirect input by the Government.
This Plan seeks to consolidate the contribution of non-state actors in economic development through appropriate institutional arrangements to promote harmonious co-existence of the sub sector and its profit-seeking counterpart, as well as the public. Further, FYDP III will strive to promote diversification of the sub sector’s investment portfolio to other strategically important value-added production and employment generating activities. These include the promotion of not-for-profit social enterprises catering for women/ youth and People with Disabilities (PWD) groups in food processing, handcraft, agricultural business, in social and environment sectors i.e., in education, health sectors, climate change, environmental protection.
3.4. Regulatory and Policy Limitations Impacting Private Sector and Non-State Actors Development
3.4.1. Private sector
The private sector in Tanzania is governed by multiple legislations and institutions. The government has taken a number of steps including: The Business Environment and Investment Improvement Program 2010, the Tanzania Business and Resource Formalization Program (MKURABITA) 2004, issuing national IDs, preparing a plan to improve business management systems to strengthen the investment environment in partnership with the private sector, and to amend the Rules of the Conservation and Environmental Management Act by reducing fees and levies; Adjusting the responsibilities of the Tanzania Bureau of Standards (TBS) and the Medicines and Medical Equipment Authority (TMDA) to eliminate overlap of responsibilities; issue a Guide directing Local Government Authorities to issue building permits within seven working days; Introduction of electronic payment system and levies by the Government; the establishment of a single 24-hour port service delivery centre and the establishment of One Stop Border Posts. These measures have led to increased participation by various private sector participants in the national economy.
Despite above initiatives taken by the Government, still there is complexity or costs of cross border trading, starting a business, weakened protection of private investments, paying taxes, and weakened enforcement of contracts. The Government will continue to address these challenges through regulatory and operational reforms, to enable access to credit, timely access to building permits and property registration. The goal is to ease and reduce financial and time burden to the private sector and building trust between the private sector and the public sector.
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Implementation of FYDP III is geared towards addressing infrastructure challenges; research and innovation challenges; and policy and regulatory barriers in the operation of the private sector: (i) Infrastructure: The government will continue with the construction of transport and transportation infrastructure, energy, water and storage in order to reduce production and transportation costs and make the private sector more competitive. (ii) Research and Innovation: The Government will continue to invest heavily in the education and development infrastructure of the nation with the specific aim of producing more skilled professionals at all levels in line with the needs of the private sector. In addition, the Government invests in quality seed research and various technologies to enable the private sector to benefit from the results of such studies and increase productivity and competitiveness. In this regard, the Government will develop a system that ensures that the public, private sector and research and innovation institutions work closely with each other. (iii) Levies and Fees: The Government will continue to improve the system of levies and fees to reduce the number of levies and fees that lead to increased operating costs and thus make the industry less competitive and thus affect performance and growth. (iv) Capital and Loans: Small, medium, and micro enterprises (MSMEs) are failing to secure financial resources from banks and financial institutions due to those institutions requiring collateral, accurate accounting information and documentation of borrowed projects. To address these challenges, the third plan will set out the steps to take to ensure that credit for this sector is available. (v) Investment Land: Through the FYDP III, the Government has put in place various measures to facilitate access to land for the construction of investment infrastructure such as farms, factories, health services, schools, hotels, and other properties. (vi) Partnership between the private sector and the Government: the challenges of the private sector cannot be solved by the Government alone without the sincere participation of the private sector. FYDP III sets out a framework for public-private partnerships with a view to negotiating and finding common solutions and building mutual trust.
3.4.2. Non-State Actors
Non-State Actors in Tanzania are governed by multiple legislations under different Government institutions. These includes: the Non-Governmental Organizations Act of 2012 under the Ministry of Health, Community Development, Gender, Elderly and Children; The Trusteeship Incorporation Act of 2002 under the Ministry of Justice and Constitutional Affairs; and The Societies Act under the Ministry of Home Affairs. The Government enacted new law in 2019 on how Non-governmental organizations (NGOs) should operate in the country but the law is yet to be fully operational. FYDP III aims to address policy and regulatory barriers in the operation of Non-State actors.
3.5. Policies and Institutional Position on Private Sector and Non-State Actors Development
The Government recognizes the importance of putting in place an enabling business environment and a conducive investment climate for private sector and non-state actors’ development. To this end, the Government is carrying out several reform initiatives. These include establishment of the Tanzania National Business Council (TNBC) as a forum for regular public and private sectors’ consultations to resolve private sector
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development challenges, the Roadmap for Improving Business and Investment Climate – 2010, Blueprint for Legal and Regulatory Reforms 2018, introduction of Small Entrepreneurs’ Identity Cards, establishment of local content units, and elevation of the Investment portfolio to the President’s Office.
The Government has also undertaken deliberate efforts to consolidate Non-State Actors registration and management in the country by cancelling all company limited by guarantee registration and conducting a national wide validation exercise of registered non-governmental organizations. The Government is working with the sector stakeholders to strengthen the NGO registrar’s office and the National Council of NGOs (NaCONGO) to enable them to fulfil their mandate in line with the Non-Governmental Organisations Act, No. 24 of 2002 (the NGO Act), and its amendments as introduced by the Written Laws (Miscellaneous Amendments) (No.3) Act 2019 (the Miscellaneous Amendments Act). These policy and institutional reforms have helped to reshape the private sector and non-state actors view and response. To be optimal, these all could have greater impact if there is coordination of relevant strategic interventions, serving the private sector.
Structured dialogic platforms through Tanzania National Business Council (TNBC) at national, ministerial, regional, and district administrative levels, have provided room for resolving private sector business issues and promote social economic development through consensus building and mutual understanding. However, the capacity of private sector umbrella organisations to represent its members in the PPDs has been weak, lacking data and unified position, and not well researched agenda. The umbrella organisations including TPSF, CTI or TCCIA have not been able to attract all private sector players in their lines of operation. This is because they have not been able to develop initiatives to resolve cross-sectoral constraints. Further, it is important to have a wider framework of new firms such as new private sector operators, People with Disabilities (PWDs) to be included at sector level. An expanded scope of framework by engaging other institutions such as National Productivity Unit could also be important to improve insights of the private sector on issues of efficiency, com- petitiveness and quality service deliver. Therefore, the ongoing links between the public and private sector should be strengthened.
3.6. Local Content and Local Economic Development
The realisation of a competitive semi-industrialised economy depends on harnessing business linkages between incoming FDI and local business firms and MSMEs as part of promoting the maximisation of local content inputs. This is necessary to deepen domestic business and social entrepreneurs’ participation in sectors with a high potential for broad-based inclusive participation including agriculture, mining and tourism. Local content is even more critical in new and emerging sectors such as oil and gas where innovative programmes and measures to create opportunities for enhanced domestic inclusion in emerging investment opportunities are required. The Government will continue to take measures for the development of a local content policy for the oil and gas sector. The Government will also continue to develop solid legal and administrative guidance, including balancing quality, price, time, and source considerations.
To be effective, local content and local economic development strategies will be formalised for certainty and predictability, thereby allowing businesses to incorporate them in their supply chain management plans and practices. FYDP III will see the development of a ‘thriving’ local entrepreneurial (private enterprise) class and clearly articulated not only as a viable for sustainable employment generation but also for faster economic growth.
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3.7. Proposed Strategic Interventions for Private Sector and Non-State Actors Development
The proposed interventions at sectoral interventions take into consideration the critical role of the private sector and non-state actors, including knowing well and attending to the needs of the implementing private sector players and non-state actors. The Government recognises the imperative to support the private sector for the strategic interventions to bear the intended results. Specific interventions that the public sector will encourage to facilitate private sector and non-state actors’ participation in FYDP III’s implementation include the following broad categories: (A: Improving the business climate; B: Expanding access to critical economic and social infrastructure, and C: Supporting enterprise development.
(a) Improving Business and Investment Environment:
A conducive environment for business planning and operation is essential for the development of a vibrant, competitive and sustainable private sector. Interventions for improving business environment shall prioritise: (i) Macroeconomic stability: The Government shall promote sustained macroeconomic stability characterised by economic growth at a rate averaging 8.0 percent per annum, low annual inflation not exceeding 5.0 percent, currency stability and an adequate foreign reserve position; (ii) Continued collaborative implementation of the Blueprint for Regulatory Reforms to Improve the Business Environment; (iii) Strengthen public-private policy dialogue through devolved and strengthened TNBC, NEEC and NaCONGO structures; and (iv) Improve market regulation to facilitate fair competition at affordable compliance costs.
(b) Expanding Access to Social and Economic Infrastructure
Adequate infrastructure (including formality and security of land tenure, transport, electricity, water and ICT infrastructure) is an essential input for smooth and cost-effective operation of business. Similarly, access to quality of social services like education, health and judiciary reduces the risk of high operational cost for enterprises, thus contributing to faster private sector development. In this regard, the following interventions shall compliment the effort to promote private sector and non-state actors’ participation in Tanzania’s economic development: (i) Continued investment in human capital (health, education, etc.) and governance systems as indicated in relevant sector programmes; (ii) Investment in economic infrastructure as indicated in relevant sector programmes; (iii) Investment to secure Tanzania’s positions a regional logistics hub with efficient air, land, marine, inland water transport and ICT connectivity.
(c) Supporting Enterprise Development
Effective change requires information, data, and analysis on the opportunities and constraints enterprises face as they strive to diagnose situations, facilitate evidence-based decision-making and assess the effectiveness of their decisions. FYDP III put in place measures to increase the survival rate of start-ups. Measures in this regard shall include::
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(i) Provide inclusive business support services, including by providing and sponsoring entrepreneurship training for eligible entrepreneurs, facilitate registration/formalisation, sharpen business plans and back up for engagement with potential financiers; (ii) Assist to provide information on opportunities, advocacy and investment promotion generally; (iii) Promote specialised financing windows for eligible enterprises; (iv) Organise or support business incubation laboratories, including for innovators; (v) Support the development and awareness of Business Development Services (BDS) to support private sector competencies along the value chains of priority sectors and use market access opportunities; and (vi) Promote local content and local economic development strategies.
3.8. Building Trust in the Public-Private Dialogue (PPD)
Review of country experiences show that, often a time, Public-Private Dialogue (PPD) becomes ineffective due to mutual distrust between the Government and the private sector. For the private sector and non-state actors to thrive and make a significant contribution to the economy, both parties must trust each other. This will make it possible for each party to fulfill its role. The Government has a responsibility to create an enabling and safe environment for the private sector and non-state actors but also the private sector and non-state actors has a responsibility to conduct its activities transparently and to provide accurate information to the government.
The FYDP III lays the groundwork for dialogue as a key pillar of trust building by ensuring that there are mechanisms for listening to and working on private sector complaints, arguments, and opinions. In the private sector, the FYDP III strategies require transparency and accurate business information, fair competition, and the proper use of investment incentives offered by the Government. FYDP III has set the stage for having a top leadership of the country with a sincere commitment to engaging the private sector. It is believed that the gap between high-level Government officials and a group of businessmen will decrease. An example is cited of Malaysia where, way back in 1983, the President of the country introduced the ‘Malaysia Incorporated Concept’ by which the top leader convinced the private sector to see national development as a corporate entity in which both the public and private sectors were partners. Stronger national development meant the best possible returns for both partners. The ‘Malaysia Incorporated Concept’ reconciled the divergent perceptions by both parties that had existed for a long time. Further, Malaysia adopted the Integrity Pact which helped the Government, business, and civil society to check corruption in the field of public procurement.
Mandatory background checks (due diligence) will be carried out by State authorities as required by the law; in which case the private sector would need to provide accurate information: this is where the trust of the private sector gets tested.
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Box 1: The State of Start-ups
Tanzania is a country in which 75 percent of its population is under the age of 35. It is estimated that about one million young people enter the labour market each year while 200,000 of them successfully find employment immediately, the remaining 800,000 are not guaranteed with official employment. Thus, entrepreneurship is becoming a major way for these young people to develop themselves, especially by starting small and medium enterprises (Start-ups, Small and Medium enterprises, and Social Enterprises), while focusing more on using digital technology and innovation in solving socio-economic challenges. The growth of modern networks and technologies and the presence of many enthusiastic young people with entrepreneurial mindset make it possible for such businesses to grow faster. The existence of an enabling environment for such businesses is, however, essential to address the challenges encountered by many youths in transforming their ideas and vision into personal income and social support, and even making their businesses fail to grow.
Innovation and potential to grow fast is a key difference with traditional SMEs. In order to reap benefits derived from start-ups businesses and address above mentioned challenges, FYDP III will focus on initiatives that aim at putting in place legal and operational business systems that recognize specific needs of youth-owned, women, people with disabilities and start-ups and businesses.
Similarly, the measures planned under the Master Plan for Financial Development 2020/21 to 2029/30 Government will promote domestic procurement as an important area of strategy to increase the use of domestic resources for all public sectors, the use of public entities by developing a local procurement strategy and encouraging the use of the Internal Procurement Opportunity Assessment as part of the Environmental and Social Impact Assessment for all major projects. Companies will be encouraged to participate in a special local procurement program as part of corporate social responsibility information. The government will conduct an analysis of the potential for special incentives for effective implementation of such strategies.
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theme that Government and private sector will reflect on in designing and implementing more 4.1. Overview pointed strategies, for faster realisation of the TDV 2025 objectives. As indicated in Chapter I, the FYDP III aims to guide the national effort towards the attainment of TDV 2025, making Tanzania a middle-income, 4.2. Consolidating the Middle-Income competitive and semi-industrialised economy Status with shared growth and high-quality human development. The chapter presents the basic FYDP III builds on lessons and carries forward the considerations, thrust and justification for the achievements from previous national development proposed conceptual framework by identifying frameworks, beginning with the poverty reduction areas most pertinent to guarantee attainment strategies and later (as guided by) the LTPP.FYDP of the TDV objectives. It amplifies, among other I emphasised on unleashing growth potentials things, science, technology and innovation in raising through infrastructure projects while FYDP II the country’s competitiveness for more gainful reinvigorates industrialisation. As with poverty participation in global trade. reduction strategies, the FYDP I & II stressed progressively high human development as the Section 4.2 focuses on the role of FYDP III ultimate goal. in consolidating the country’s status as a middle-income country. Sub-section 4.3 outlines Building hard and soft infrastructure for Least the ‘norms’ that guide the nation’s choices of Developed Countries (LDCs) for instance Tanzania specific means (interventions) and implementation is a continuous process so as industrialisation. in pursuit of TDV 2025. Section 4.4 reviews literature The proposed interventions under FYDP III aim to on global competitiveness and draws lessons for continue expanding the networks of transport Tanzania. Section 4.5 brings together the conceptual infrastructure, water supply, the national grid framework for linking competitiveness, industrial- (electricity) and communication including high isation and trade, whereby good governance and speed internet to all rural and urban locations of the social development are featured to make FYDP III country. The infrastructure networks will support truly consonant with TDV 2025 objectives. Section access to markets and easier delivery of social 4.6 presents a thematic approach that combines services. Economic policy will focus on promoting
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macroeconomic stability and business environment for enterprise growth, ensuring sustainable use of the country’s natural resources as well as exploiting the potentials of geographical location. These create and strengthen the productive capacity and basis for stronger growth of the economy.
Attaining a middle-income status boosts the expectations for consolidating the position by 2025. However, it is understood greater momentum is required, since as noted in Chapter Two, the country has consistently fallen short of the annual GDP growth target of 8 percent or more stipulated by TDV 2025. Efforts to strengthen industrialisation, trade and competitiveness agenda are expected to improve productivity and export performance. The FYDP III theme integrates multiple, linked objectives of building a strong, competitive economy, an economy that is industrializing and exporting more value-added products and services while consolidating domestic market. Achieving an increasing share in global trade requires: (a) Good understanding of the mega-trends, opportunities and challenges posed by the current global economic order, hence the need to explore more the concept of international competitiveness; and (b) Building a strong productive base through continued structural transformation characterized by shift of factors of production and the relative shares of agriculture, manufacturing and services in total output (GDP), as well as sophistication of final products.
For this reason, the FYDP III incorporates the drive for greater competitiveness, to domestic and international levels, in all sectors, driven by STI-based capacity to diversify production and exports. Besides economic growth, other objectives of TDV 2025 is to improve human development have to be attained. Thus, more growth is required to generate adequate financial resources to finance social development interventions. Faster growth will also enable the country to avoid slipping back to the low-income country bracket. The FYDP III is, therefore, expected to drive the country towards upper middle-income status.
In addition to expanding exports, Tanzania has reason to nurture the domestic market for most of her value-added (manufactured) products as the economy develops in terms of both income and quality of life befitting the middle-income status. A steady domestic market, as per capita income rises, will allay some of the risks due to unforeseen shocks to Tanzania’s performance in foreign markets. In general, strong economic growth will help build resilience and preparedness for possible other shocks such as pandemics, extreme weather, fluctuations in external commodity prices, new/competing suppliers and geopolitics.
In the endeavour to Realising Competitiveness and Industrialisation for Human Development, FYDP III adapts to Tanzanian circumstances and draw lessons from industrialised and industrialising countries in developing strategies and setting priorities. International and regional economic arrangements and conventions on environment and climate, among others, provide insights on a range of strategic guides on the social dimensions of development.
4.3. Guiding Norms and Values for FYDP III
The FYDP III recognises the paramount of national unity and social cohesion, rule of law, respect for human rights, equitable society and peace and security as prerequisites for sustainable and inclusive socio-economic
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development. Tied to these values are good governance, continued fight against corruption and proper use of the nation’s natural and financial resources.
Under the FYDP III and beyond, economic policy will aim at building an economy that is inclusive, competitive and integrated, underpinned by industrialisation and services driven by modern science, technology, and innovation (STI). For FYDP III to have the desired socio-economic impact, economic management will, at the minimum, observe the following supporting conditions: (i) That economic growth (GDP) steadily grows at not less than 8 percent per annum, aiming specifically at consolidating the country’s status as a middle-income country; both in terms of income and indicators of social development; and that the country does not slip back into low-income country bracket; (ii) That Tanzanians shall maintain and uphold full right to their economic choices, with regard to ownership and exploitation of the country’s natural resources of land and air space, water, mineral wealth, petroleum and natural gas, wildlife and forestry resources, and that the resources shall benefit all citizens; (iii) That the country shall exercise very close oversight over extraction of the natural resources. This will include building local technical capacity in the technologies of extracting, processing and other value addition activities; increased local capacity for contract management and negotiations over production and sharing of benefits thereof; maximizing local content; and that extraction shall be sustainable in terms of environment for the benefit of current and future generations; (iv) That the country continues to expand the basic economic infrastructure (networks of surface, marine, and air transport; power and water); and that all development projects make clear budget provision for Operations and Maintenance (O&M); and protection of infrastructure against vandalism and any forms of sabotage in order to sustain the flow and quality of infrastructure services; (v) That the country continues to expand the digital infrastructure - the National ICT Broadband Backbone - for country-wide quality mobile telecom networks in order to enable the citizens to benefit from the digital revolution including development of digital-based services in finance, health, education, public administration, judicial services and market information; (vi) That agricultural sector will be transformed and commercialized consistent with considerations of climate smart agriculture (CSA) that farmers shall be incentivized to invest beyond food security needs, sustainably increase productivity and incomes, adapt and build resilience to climate change, and where possible reduce and/or remove greenhouse gas emissions; (vii) That, through international relations, Tanzania will actively work for global and regional peace and use economic diplomacy to guide and promote foreign trade and investments while standing up for fair competition within the country and between the countries and the rest of the world; (viii) That improved, transparent business-enabling conditions are put in place and implemented for private enterprise growth and for the formalization of the informal sector. In this regard, minimum requirements shall include: a) Consolidation and harmonization of the regulatory conditions for registration, paying fees and levies and other requirements in order to make it easier for businesses to comply, including in paying taxes. b) Revisit the mandates of regulatory institutions for clearer separation of revenue-generation and facilitative roles. c) Application of digital capacities to curb corruption practices including minimizing corruption-prone person-to-person contacts in the course of such facilitation. (ix) With regard to employment creation, apart from nurturing private enterprise growth, more interventions
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shall be pursued to promote productive and decent job-creation through: a) Radical review and strengthening of existing support schemes for youth, women and people with disabilities for special skills and low-interest rate loans; and b) Targeted support to technical/engineering graduates who develop tech-start-ups with special interventions for young women engineers. c) In both (a) and (b) cases, monitor, support and evaluate their growth and loan repayment for more others to benefit. (x) That government engages in investment/business activities that are of strategic, national interest and those in which the private sector has least interest or is not financially able to undertake; and that both state-owned and private enterprises shall strive to sharpen their competitiveness in local and global markets; (xi) That the scope for public-private sector dialogue is expanded and that issues of mutual mistrust are addressed; and (xii) That stable and predictable investment/business environment is maintained in order to attract both local and foreign investors. Among other steps, efforts will be made to: a) Maintain macroeconomic stability - high GDP growth, domestic revenue mobilisation and anti-inflation measures, supported by stable stance with supportive monetary, fiscal and financial policies; b) Reduce dependence on foreign aid; c) Expand and improve human capital base, for a population that is educated and learning, and is skilled especially in science and technology; d) Ensure the workforce is adequately motivated and compensated; e) Improve and protect welfare and working conditions of workers in all sectors; and f) Strengthen environmental conservation and protection in order to mitigate adverse effects of climate change.
4.4. Experience from Global Context of Competitiveness
A competitive economy may be conceived as the one whose nationals and firms are able to sell goods and services, under free and fair conditions, in global trade at competitive prices and quality. This presumed frictionless international trade. For an individual country, the objective is to raise domestic employment and the nation’s global market shares in trade and inflows of foreign capital, while strengthening its productive base and acquiring capability to flexibly diversify its structure of production and exports in response to changing market conditions.
For a variety of reasons, international competition is not always fully free and fair. For economic and even political reasons, countries apply tariffs, non-tariff barriers and even outright sanctions. In recognition of this, the multilateral trading system provides for options for countries to agree such “market access” and/ or preferential trade arrangements which the signing parties consider to be mutually beneficial. But such arrangements barely conceal the underlying ‘mutual competition’ among countries; rather, behind the scenes, nations strive to ensure the better conditions for their national enterprises to excel in order to secure and raise
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export markets (shares), attract foreign capital and maximise on or protect domestic jobs. The nations do so by managing an attractive business/investment policy environment, considering infrastructural services, quality of the labour force, efficiency of customs, stable tax and regulatory framework, among other factors.
In many of the compilations of rankings of countries by competitiveness, several factors appear that nations’ policy makers focus on in their attempts to assist their national enterprises to grow and compete interna- tionally and to attract new (foreign) investments. When put together, these factors imply actionable areas for government and domestic firms. These include: macroeconomic stability; quality of infrastructure (transport, energy/electricity, telecommunications); human capital (talent, skills, wellness, creativity, integrity); efficiency of institutions; level of capital/financing; transparency of the transparent regulatory frameworks; cost of doing business; exchange rate stability; and the role of Government in supporting Research and Development.
Factors that enhance competitiveness also play a role of influencing attractiveness of the country to foreign direct investment. Countries strive to reduce domestic costs of production (by putting in place more efficient infrastructure) and increase labour productivity as a basis for creating competitive advantages. Competitive advantages are simply value-addition activities that are underpinned by STI, above and beyond the simple (elementary) processing of traditional comparative advantages. Innovation makes possible new products/ varieties (diversification of production base and of exports), lowering costs and increasing output and standards (quality). Innovations introduce new techniques, new products and new methods of organising production, exchange and networking. Experience from advanced industrial countries and industrialising Asia, show that government funding of STI and R&D infrastructure has been instrumental in supporting innovations. In some instances, governments apply forms of coercion to ensure that results of R&D and innovations are put into practice to improve the competitiveness of national businesses.
Experience therefore shows that it is human capital - more specifically - superior knowledge and technological development that can cause a transformational change in export performance, reflected in the knowledge and technology content of manufactured exports. This is important for Tanzania; whose exports have long been concentrated in a few primary exports. STI-based human capital should make possible diversification and ability to take part in the evolving Global Value Chains (GVCs). In general, the benefits of competitiveness go to countries that excel in science and technology-led creation of ‘competitive advantage’, which is a superior enhancer of export performance, that is, as and when the shares of medium and high technology content in total manufactured exports increase.
With regard to foreign direct investment specifically, governments of developing and developed nations alike have, for the last six decades, created public institutions, commonly known as investment promotion agencies (IPAs), to assist in facilitating foreign investors. Inflows of foreign investors mean new, additional capital that comes along with new (advanced) technologies, managerial and marketing know-how, networking, and have the potential to boost exports. Developing countries like Tanzania, in addition, have to pay further attention to facilitating domestic investors in support of a nascent private sector.
Another perspective for Tanzania’s current and future development endeavours is to avoid ‘global rush’ by advanced industrialised countries, for natural resources, particularly minerals, oil and gas resources in developing world, including Africa. For the developing countries, the choice is to either:
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(i) to continue exporting the resources in their natural state (unprocessed), with only limited local processing or (ii) to do a good deal of local value-addition before exporting them. Option number (ii) is the correct route to take for the national interest in developing countries.
However, this option requires a combination of (i) strong ‘national human capital’ in terms of knowledge, science and technology and (ii) political willpower to wrench the best deal for the country. The same may be argued for all other natural resource sectors including fisheries and forestry resources.
A study of Asian economies that became lower-middle income and graduated to upper-middle income between 1960 and 2014, and became successful exporters, found that apart from individual country-spe- cifics, such as demographics, financial sector development, and hard-working populations, the respective governments: (i) Prioritized (and still prioritize) spending on human capital development as a basis for local value-addition, R&D and innovation; (ii) Laid basic infrastructure; (iii) Instilled good governance, both state and corporate; (iv) Supported the development of a strong ‘indigenous capitalist class’; and (v) Designed and pursued export promotion and policies that quickly helped them transit from import substitution. In particular, the countries purposefully built local technological capabilities that enable them to develop, fabricate plants over time, and thus gradually reduced over-reliance on imported plants and technologies.
In countries like South Korea, Brazil, Chile, Indonesia, Malaysia, Singapore, Thailand and Vietnam, the Government created a persuasive vision and rallied the majority of the population behind that vision. The leadership was complemented by a responsive, disciplined population, and focused on enterprise development. In response, the local capitalist class developed the capacity of participating in the global value chains at par with more seasoned multinational corporations.
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4.5. Framework of FYDP III
4.5.1. Highpoints of the FYDP III
The FYDP III conceptual framework is built around the focus on consolidating the middle-income status and quality of desired outcomes. The concept links the following five sub-themes, the implementation of which will require cross-sector coordination/collaboration: (a) More active pursuit of competitiveness, driven by new knowledge and STI and digital revolution in all sectors. There is greater scope for value-addition activities to achieve - modernisation and improvements in productivity and quality of goods and services. (b) FYDP III shall deepen industrialisation and services provision which are reinforced by new knowledge, STI and digital revolution: More specifically, the country will raise the number of manufacturing establishments, with STI-led value-addition in all productive sectors and services. This will make a more sustainable basis for strong domestic supply and export. In addition, a qualitative noble transformational change in the composition of the country’s exports is to attain a greater proportion of medium- and high-content manufactured exports. (c) Trade and Investment: Export growth can be attained under conditions of: continuously (i) enhanced competitiveness (ii) and deepened industrialisation and service provision. The best scenario is where most exports embody medium- to high-technology content, since such exports of goods and services command steadier prices than primary exports. Recognising the role of private sector in production and trade, FYDP III calls for the role of Government in promoting and facilitating private investment and private sector participation in international trade. In the meantime, as the country continues to import mainly capital and intermediate inputs for industrial development, the long-term goal shall be to have an industrial strategy that enables the country to increase capacity to manufacture at least some of these goods locally. (d) The quality of the desired outcomes of FYDP III – is synonymous with the high-level human development and in tandem with TDV 2025. This will be achieved through spending on social development interventions, with particular attention to improved access to education, health, water, public administrative services, law and order, etc. in order to maximize inclusiveness of development. (e) Skills development will amplify skills development as a way of addressing the low soft skills (as identified in Chapter II). Such skills development from the early levels of schooling (nursery levels) all the way up, will prepare the youth for self-employment. Attention will also be paid to raising the levels and quality of the technical and vocational education and training (TVET) channel, as well as the rare, highly specialised skills in order to raise and sustain productivity and competitiveness and the capacity of the local expertise in developing/exploiting the country’s vast natural resources and manning large engineering development projects. The skills development interventions reinforce those proposed as factors that enhance skills development.
The sought-for competitiveness, industrialisation and service deepening, and trade and investment together lead to economic growth while social development adds up to the quality of economic growth. The framework (Figure 2) features governance as a fundamental condition without which economic growth and social development interventions cannot take place on a sustained basis.
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Figure 2: Conceptual Framework for the FYDP III
4.5.2. Good Governance
Governance entails a bundle of national priceless values which include: national unity and social cohesion of the people of the United Republic of Tanzania; peace and security; a just and equitable society, upholding human dignity; rule of law; and political stability. The concept further, demands accountability of both the citizenry and those in position of leadership. Clear provisions are made in FYDP III to guarantee participation of all citizens in making key choices in production (work) and in the distribution of the proceeds of growth.
Under governance there is Government commitment to foster strategic public-private sector engagement and government leadership in promoting international economic relations. In the case of the latter, Tanzania is pursuing ‘economic diplomacy’ towards improved global, regional and national peace and security, equality and respect of territorial sovereignty. These are conditions without which production and trade activities cannot take place smoothly within and across nations. Economic diplomacy fosters the promotion and facilitation of flows of investment, trade and ideas (knowledge, experiences, negotiations, settlements) for mutual (win-win) gains from trade and economic independence. Domestic trade and investment promotion institutions and diplomatic missions will, together, organise information about the country’s investment opportunities and tourist attractions and communicate the same in foreign countries.
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Going forward, the FYDP III will bank on the trust and public confidence that has been inspired by concrete good-governance and improvements in public services during the implementation of FYDP II. Firm steps taken during the period include stern court and other actions against corruption; removal of ghost workers from public service; curbing theft of minerals and other natural resources; and brakes on the trade in and use of narcotics. Increased discipline at workplaces, including in the use of public finances on concrete projects and social programmes rekindled public goodwill and endeared the citizenry to the agenda of protecting the nation’s natural resources and national cultural values and ethics.
4.5.3. Economic Growth
Economic growth invokes the desire to enable the increase in productivity and innovation in all sectors of the economy. Both productivity and innovation entail competitiveness at individual, firm and national level. Most of all, competitiveness is expected to lead to improved export performance. Under this block there are three closely related sub-blocks: Competitiveness or ‘a competitive economy’ as per TDV 2025 document (p.12), with key ‘determinants’ in Figure 4.1. This is followed by industrialisation and Service; and trade and investment. Industrialisation and Services is now established sine-qua-non for economic transformation, considering the relative significance in national output of (a) Manufacturing; (b) Agriculture (crops, livestock, forestry, fishing), mining and (c) Services and Trade within which ‘export-led’ growth is embedded, and analysed along with foreign direct investment.
4.5.3.1. Competitiveness
Figure 4.1 shows the factors that influence the level of competitiveness of the economy: (a) human capital enhancement (b) enabling business/investment environment, (c) market organisation and (d) digital revolution (also known as 4th Industrial Revolution). In most literature, these appear in various models and international comparisons of the various aspects of competitiveness. It is noted, however, that these factors interact one way or the other, mainly in the ways they relate to or reinforce private enterprise development.
(a) Human Capital Development Competitiveness is advanced primarily by human capital. Human capital development involves creation and use of knowledge and STI to increase productivity and competitiveness in all sectors. It is advancement in human capital that increases the knowledge and technological content in productive activities and products in all sectors such as manufacturing, agriculture, mining, construction and services. For countries like Tanzania, it is important to exploit the advantages of late comers by intensifying training and grasping the latest digital technologies which are set to take productivity and innovative capacities to new levels in all industries and services.
Further, human capital propels innovative capabilities, including in managerial and networking capacities. It imparts technological flexibilities that allow the innovating firms to respond quickly to changes in demand and tastes. It is noted that TDV 2025 envisioned an economy that is not only competitive but also one “with the capacity to articulate and promote national interests and to adjust quickly to regional and global market shifts”. The capacity to ‘adjusting quickly’ to market shifts’ can be met by STI-driven capacity. Innovating firms are capable of carrying out product innovations into new products, designs, variety/uses and process innovations or ability to fairly quickly adjust scale, increase plant efficiency, save on inputs for more output, reduce costs and increase in productivity. All this are key to keep the firm competitive and growing.
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The factor ‘human capital’ is cumulated from early child development, nurtured by good health, nutrition throughout the schooling and working experience, focusing in the disciplines of science, technology, engineering and mathematics (STEM). Investment in STEM has long attracted attention in advanced countries as an effective way of boosting innovation, mainly in manufacturing. STEM is also credited for the exponential technological progress in Asian countries. Further, concerted efforts are key in encouraging female students to pursue STEM subjects. In addition, giving priority to youth and people with disability in the area of human capital development is helpful for both youth and people with disability.
The FYDP III exhorts availability of resources to ensure basic, advanced and tertiary education and technical/ vocational training are equipped for STI and inclusive digital learning/teaching. This will include continuing to expand physical infrastructure and facilities in line with projected changes in the demographics, in order to allow quality education and health provision that meet standards (number of students/pupils per class, student/teacher, student/teacher ratios, teaching aids; doctors-population ratios, for instance). Adequate quality of education that meet the prescribed standards will ensure availability of quality human capital resource for the nation.
In short, distinctive actions for accumulation of human capital may be itemised as follows: (i) Basic and advanced level education: Continue improving reach and quality of basic and advanced level education, equipped for next-level STI and digital learning and teaching. (ii) Universities and technical colleges and R&D institutions to re-reorient the curricula around STEM subjects with more fieldwork/practical attachments. To that effect, formal links between the institutions of higher education and vocational and technical training and the labour market (public sector and corporate/ private sector) shall be emphasised in order to reduce/eliminate skills mismatch. (iii) Strengthen technical and vocational education and training (TVET) channel by (a) strengthening and expanding current technical and vocational education and training (b) designing a higher-level training programme (3 to 4 years advanced) for deepening technical expertise beyond the current programme to create a new crop of super-technicians; (iv) Provide a special fund (out of existing ones) for the graduates from colleges to incentivise them to design ‘joint’ business-cases (projects) and fabricate prototypes (innovations); Design/implement programmes enable technology start-ups to link up with and benefit from the proposed national digitalisation strategy.
Role of Innovative Institutions The Government, through its ‘innovation institutions’ will plan the best way to fast-track efforts in this direction. This will involve revisiting the original mandates and assess what it should take for them to produce solutions to farmers, manufacturing enterprises and other users of technologies. These institutions include the Commission for Science and Technology (COSTECH), the Tanzania Engineering and Manufacturing Design Organisation (TEMDO), Centre for Agricultural Modernisation and Rural Technology (CAMARTEC), Tanzania Industrial Research and Development Organisation (TIRDO), Small Industries Development Organisation (SIDO), and for public health (National Institute for Medical Research, NIMR). On board also are the universities or equivalent higher education institutions which cover several disciplines, teaching and carrying out research.
The research findings will be implemented through a series of activities such as rounds of technical specifications and designs, experimentation, prototypes, reliability tests, consumer and user safety tests as well as patenting and/copywriting. Finally, mass-production will be undertaken after project appraisal protocols.
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(b) Enabling Business and Investment Environment Business and investment environment entail a number of issues, including: creating right set of institutions, policies, laws, and regulations that are efficient in facilitating businesses and investment to become profitable and sustainable. Besides, it is necessary to ensure macro-economic stability and supportive infrastructure that reduce costs of doing business, and transparent and predictable legal and regulatory frameworks.
The FYDP III will continue to expand networks and improve quality of infrastructural services to improve efficiency and lower costs of operations. In addition, improved infrastructure promotes inclusiveness through facilitating access to other social amenities such as clean and safe water, health and education facilities, markets and financial services.
While indeed a lot has been done to address the cost of doing business through implementation of the ‘Blueprint’ action plan, there are still some issues that need to be addressed. These include unfair competition, the scope of public-private sector dialogue and mutual mistrust between the private and public sector.
Actions have to be taken to increase competition. This implies that competition should be fair or made to be so through stringent enforcement of relevant legislation. Tendencies for ‘predatory practices’ by more powerful companies against smaller and upcoming enterprises must be checked.
The scope for the public-private sector dialogue will be extended or as much as possible be made representative enough of the micro, small and medium enterprises at sub-national levels. Sector characteris- tics need to be taken into account in order to accommodate the relevant needs.
As entrepreneurs seek to comply with regulations governing ease of starting, registering, operating a business, paying taxes, obtaining permits, capital, and networking, issues of mutual mistrust between the private and public sector will be addressed. In particular, the mistrust will be resolved through mutual understanding of the two sides (business community and relevant public sector authority) and putting in place a clear and transparent mechanism that promote compliance.
The institutions involved in facilitating investments applications, registration, permits, etc. will review their operational procedures and explore the possibility of jointly working out a consolidated investment facilitation arrangement that is straightforward, short and transparent (regarding permits, licenses, etc.).
(c) Markets ‘Market’ is another factor that appears in international rankings of competitiveness in various settings. The main markets are for goods, services and factor inputs (land, labour and capital). Both domestic and foreign investors are interested in the quality and marginal productivity of factor inputs and how efficiently the market functions and are regulated. In labour, investors look for talent/skills and integrity. For Tanzania, land is another factor that features as a challenge for investors. Financial sector development is critical in mobilising and channelling of capital to most profitable ventures. Markets also involves import and export of goods and services. Existence of regional and international trade ‘agreements’ on trade in goods and services, and ‘trade wars’ even among signing parties (partners) implies that international trade is ‘not so free’ after all.
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It is important for countries like Tanzania to devote attention and resources to enable domestic private sector to acquire technical knowledge required to meet quality, health, environmental and other international standards. Tanzania’s horticulture sector is one of the sectors that has successfully met the international standards and hence managed to penetrate external markets. The FYDP III will, therefore, champion an export development strategy that sorts, at sector level, and develops such technical capabilities.
(d) Digital Revolution Digital revolution (also, digitalisation) includes current and rapidly growing range of new technologies based on digital applications that are accelerating efficiency in production, services and governance systems. They include innovation like robotics, artificial intelligence (AI), the “internet of things” (IoT), industrial biotechnology, nanotechnology and advanced materials, cloud computing, block chain, energy storage, 3D printing, Big Data, to mention just a few.
Although it is not readily feasible to gain entry into many of the frontline digital technologies, several countries including in Africa are already seeing a rising number of innovation start-ups, such as in Artificial Intelligence (AI), cloud computing and block chain. For example, West Africa, block chain is enabling efficient verification of property records and transactions. Block chain is immutable, impersonal and can therefore reduce risk of fraud or favouritism. Financial inclusion has been attributed to application of electronic payments platforms and virtual savings and credit supply platforms.
FYDP III calls for deployment of STI and an enabling environment for private enterprise investment in the research on digital technologies of the 4iR. Envisioned too is job creation potential for a population (especially the youth) that is becoming tech savvy thanks to expanding mobile telephony and the internet. To be ‘future ready’ for digital-technology uptake, investment in cutting-edge STI and ICT infrastructure and digital skills are paramount. The services sector is claiming a big share in the GDP (national accounts) and it is one of the areas that stand to benefit immensely from digitalisation.
A national digitalisation strategy shall help in guiding efforts through a fairly new terrain of digitalisation by considering: (a) Need for a flexible and dynamic legal and regulatory framework to guide digital-innovation activities such as research and new tech start-ups. The framework would consider fair competition, protection of patents (intellectual property rights), registration, cyber security and ethical issues among others; (b) Financing strategy involving public and private sectors in support of tech start-ups; and (c) Establishment of Industrial R&D and innovation Parks to link universities and private sector in order to track the transition of AI or block chain any other innovation from lab to market.
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4.5.3.2. Industrialisation and Services
Industrialisation has three boxes (i) Manufacturing (ii) Agriculture, Mining and other Extractive Industries, and (iii) Services. The key underlying notion to industrialisation is value-addition, occasioned by knowledge and skills accumulated through experience and training. The principle applies to all productive sectors and services, improving productivity and inventiveness to enhance competitiveness. In Figure 4.1 the entire area within which the three boxes are located is populated by competitive enterprises, both private and state-owned. A balance is to be agreed: which enterprises the state enterprises run and which ones the private sector runs. The state administers regulation (Enabling Business Environment) and policies guiding the entire set of com- petitiveness factors.
(a) Manufacturing According to the National Accounts of Tanzania, Manufacturing includes manufacturing of; food prods; beverages; tobacco products; textiles; leather and related products; wood products; chemical and chemical products; pharmaceutical & medical chemicals; rubber and plastics products; basic metals; computer & electronics products; machinery and equipment; motor vehicles, trailers, transport equipment; furniture and other. The current structure of the manufacturing sector in Tanzania is dominated by small scale establishments. These need to grow. The larger ones need to become steadier. Most of the activities are concentrated in the manufacture of food products, wearing apparel and furniture. There are few establishments that produce more technologically advanced products.
Reflecting on the typology of the knowledge and technology content of industrial activities in Table 11, URT/ UNIDO (2012) report finds that most Sub-Saharan African countries’ manufactured exports are made from resource-based, low-technology establishments. In order to catch up and produce medium- and high-tech manufactures, massive investments in human capital are needed.
Table 11: Increasing Knowledge and Technology Content (selected examples)
Resource-based, Low-tech Medium-tech manufactures High-tech manufactures manufactures
Food and beverages, cement, Passenger and commercial ICT/data equipment, TV sets, cut gems, glass, textile fabrics, vehicles and parts, motorcycles transistors, turbines and other leather manufactures, simple and parts, synthetic fibres, power generating machinery, metal parts, furniture jewellery, chemicals and paints, fertilizers, pharmaceuticals, optical plastic products engines, motors, industrial precision equipment, aerospace machinery, ship building
Source: Extracted from URT/UNIDO 2012
For an idea of how much effort Tanzania has to make, COMTRADE data are plotted (Figure 3) for the proportion of high-tech exports in total manufactured exports (percentage), showing averages for high- and middle-income and lower middle-income countries as well as for Tanzania. Between 2008 and 2018, Tanzania is performing below the lower middle-income average.
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Figure 3: High-Tech Exports as Percentage of Total Manufactured Exports.
an ania iddle in ome Hig in ome o er middle in ome
Source: COMTRADE data
In principle, however, manufacturing-industry will continue to be a lifeline for the development and co-development of all other sectors and services. The sector’s long-term objective shall be to consolidate itself into a sector capable of designing and fabricating machines and parts thereof for use in resource-based manufacturing and beyond. There is need to support private enterprise workshops that venture into fabricating parts, machines tools and metal works in general.
To realise this there shall be strategic links between human capital (STI/STEM) interventions, R&D, vocational training, manufacturing and ‘modernisation’ of the extractive industries – in order to identify relevant/ appropriate technical solutions.
Contribution of Export Processing Zones (EPZs) Partly as a result of failure of the Import Substitution Industrialisation Strategy (ISI), the EPZs emerged as a tool for development and export-oriented growth in the developing countries, although not all agreed on its (presumed) impact.
Tanzania is one of the countries that have embraced the EPZ concept. The effectiveness of the model has to be assessed on case by case basis, considering for instance, review of benefits and costs; the choice and transfer of technology and strategies to acquire, internalise and deploy knowledge and skills in new technologies; the fiscal and non-fiscal incentives provided/received (justification and evaluation of such incentives); actual contribution to export development; contribution to creation of jobs; and industrial relations and/or labour market issues such as decent pay and labour rights in EPZs.
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(b) Value-addition Potentials in Agriculture, Mining and Other Sub-Sectors The major sectors in focus are agriculture (crop farming), livestock keeping, fisheries, forestry; and mining and quarrying. They represent basic areas of comparative advantage. Historically, they have been the leading employers and sources of raw exports; but they continue to have limited processing (value-addition) capacities.
The unifying theme under the notion of industrialization is the application of knowledge and technology to turn ‘comparative advantages’ into ‘competitive advantages’; as such, diversification. The FYDP III exhorts Government and private sector players in these sectors, together to consider and work on at least three hypothetical levels:
Level 1: Use science technology and innovation / research and development (STI/R&D) as well as other re- search-findings to improve productivity and quality: This means different scientific methods are applied on crop farming, fishing, forest and mining activities to make first level, elementary value-addition, or limited processing. The activities result in better quality products - higher quality hides, fish products, lumber, honey related products etc. They need also to include specific objective of reducing post-harvest loss, developing other uses or by-products, and reducing residuals from minerals.
Level 2: The incorporation of inclusivity in the use of science technology and innovation / research and development (STI/R&D) with more advanced equipment and methods, to ‘discover’ new varieties, new alloys etc. around or out the basic raw commodities, and residuals more refined. This may be termed ‘product development’, which advances the scope for diversification into new products of even higher value. The best scenario is where these refining stages are located in the country, allowing jobs to qualified domestic workforce.
Three examples may demonstrate the point: but the scope for STI/R&D-led diversification exists for most of the country’s primary products. (i) In the case of cashew nuts, it has been shown there can be up to 10-fold increase in the market value when raw cashew nut is processed into various products/by products (Box 2).
Box 2: Spin-off Products from Cashew nuts
• Cashew kernel as an ingredient the snack food industry and confectionaries; • Cashew NutShell Liquid CNSL as component in drugs, paper ink, textiles, cosmetics and paints manufacturing, treatment of certain dermatological disorders; • Outer shell as fuel (e.g., briquettes); • Testa/peal as natural antioxidant useful in leather manufacturing industry; • Cashew apple with medicinal value and as food (jam, beverages, chutney, beverage, juice
(ii) Raw metals can be processed into different products and uses at home through enhancing value addition in extractive industries (beneficiation) (e.g., gold alloys used to make jewellery, coins, or alloyed with the metals such as copper, silver and platinum).
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(iii) It is possible to produce locally a variety of products from forest products like lumber (papers, packaging products); cellulose and lignin used in the production of different household items such as paints, ping-pong tables, and batch towels made with rayon made from the wood component cellulose etc.
This is to demonstrate why resource-rich Tanzania ought to develop and deploy its human capital (technical, innovative skills) to develop new products (value-added) – as competitive advantages.
Exploration and extraction of minerals and natural gas require a lot of high-level expertise and financial investments. Natural gas can be used as fuel and feedstock for petrochemical industries in the production of methanol, plastics, synthetic materials, pharmaceuticals and liquid fuels. In view of intensifying interest of international capital in the continent’s mineral and energy resources, more efforts will focus on fast-tracking ‘learning’ and the development of national technological capacities in metallurgy, modern processing technologies as well as legal aspects and negotiation capacities relating to extractive sectors.
In the case of minerals, appropriate commercial (institutional/organisational) arrangements that ensure producers of the primary products get fair value of what they produce. Continued facilitation will be extended to small-scale miners in terms of technical capacity. Local content policies, legislation and practices play an important role in increasing the extractive industries’ contribution to the overall national development effort.
Level 3: Under level 1 and level 2, most of the machinery and/equipment are ‘imported’. Under Level 3, the country builds up local technical-cum-engineering capacities, involving collaboration of sector experts. Technicians and engineers and specific sector exports (agriculture, medicine, construction, fisheries etc.) design special-purpose machines and equipment (shredder, crusher, planter, decorticator etc.) and fabricate machines or parts in the country (they may source parts from other countries/sectors). The purpose is to reduce overdependence on foreign capital and intermediate inputs; with a possibility of exporting such technological products.
It may be important, for instance, to revisit (for possible revitalisation) the concepts that guided the establishment of machine-tools and technology development centres and motor-vehicle manufacturing projects. These are not only of commercial value; they are strategic in that they can always be relied upon in cases of states of emergence or failure of the country to obtain the same from elsewhere. Because of the vast amount of capital/investment required, and because of the strategic nature of some of these ‘competitive advantages’, (dedicated) state-owned enterprises/units may be in better position to undertake these important “projects”.
(c) Services In the National Accounts of Tanzania, Services include Wholesale and Retail Trade; Transport and Storage; Accommodation and Food Services; Information and Communication; Financial and insurance activities; Real estate; Professional, scientific and technical activities; administrative and support service activities; public administration and defence; education; human health and social work activities; arts, entertainment and recreation.
All the sub-sectors contribute to growth and employment. FYDP III expected increased productivity through application of modern methods. Most of the services are provided by the private sector; while some are provided by the public sector (e.g., in public administration and defence). There are varying degrees of public sector participation in other sub-sectors, whereby some state-owned enterprises operate along with private sector enterprises. A generic requirement across all service sectors is improvement of productivity and com-
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petitiveness, taking advantage of modern manufactured/digital machinery and devices, leading to quality services (time saving, customer/client care, courtesy etc.) along with enhanced professionalism.
Tourism stands out as one of the sub-sectors that integrates more than one services – notably – transport, accommodation and food, information and communication. Tourism is one of the major foreign exchange earning sub-sector. In addition, the sector has substantial direct and indirect linkages with the local economy in terms of supplies and jobs. The vulnerability of the sector to the recent and on-going pandemic brings back the question of diversification of the economy from over reliance on a few sectors; and in much the same way, diversification of exports and export markets.
4.5.3.3. Trade and Investment
Trade refers to the country’s participation in global trade, regional trade and domestic market considering the activities of the competitive enterprises under manufacturing, agriculture and service activities. It involves importing and exporting.
In view of the aspired for export of value-added products and an appreciable amount of investment in the country’s areas of comparative advantage, investment environment ought to be part of the strategy. Often after all, most investments aim for possibilities of exporting given the country’s low levels of effective demand (disposable incomes).
Participation in global and regional trade, including importing, attracts domestic and foreign investment and access to new technology and managerial skills. Exports reduce foreign exchange constraint; create jobs and higher capacity utilization of domestic resources, in turn, contributing to overall growth. The following trade-related issues merit consideration:
First, Tanzania’s exports are concentrated, dominated by primary exports, including minerals and semi-processed agricultural exports. They have low technology-development impact on domestic producers as well as jobs in the domestic market. Under FYDP III transformative export performance will require an increase in the number of domestically manufactured products that embody medium- to high-technology content.
Second, some of the country’s exports of agriculture, consumer goods and other manufactured products face (and still face) varying degrees of protective tariffs in developed countries. This has been a setback for a long time. However, while it is correct to demand fair application of Technical Barriers to Trade (TBT) and the Sanitary Phytosanitary (SPS) and other health and environmental standards, it is important for Tanzania to devote attention and resources to build local technical capacity especially amongst entrepreneurs including women, youth and people with disabilities so as to meet some of these quality standards – which can be relevant for Tanzania consumers as well.
Third, as the private entrepreneurs get exposure to international competition, including through imports, they will continue learning ‘to be competitive’, but fair competition must be ensured or even enforced. Strong anti-competitive practices must be curtailed. Protective policies would have to be invoked where competition is found to be severely unfair.
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Fourth, on a broader level, where the country is a member or in the process of ratifying membership to competing regional trade integration schemes (e.g., EAC, SADC, AfCFTA and proposed Tri-Partite pact including COMESA, EAC and SADC). The usual caution is how timely the government engages the private sector players (exporters and importers) in negotiating around variable timetables of the disparate integration schemes. To most of the private sector players many of the arrangements may be too technical in legal terms and standards. Therefore, the government will, as much as possible, share information with the private enterprises about international agreements and commitments that have direct implications for the activities of the private sector enterprises that take part in external trade as importers and exporters.
4.5.4. Social Development
Inclusiveness means improved equality and is a condition for social stability and mobility of any economic system. The envisioned economic growth shall not only be high/fast; it shall also, for the sake of societal stability, be inclusive. Inclusive development shall be occasioned by policies dedicated to: (i) spending on social development (health and education, human settlements, clean & safe water, environment - paying attention to equitable access, gender and people with disabilities and (ii) expanding networks of economic infrastructure, such as roads, power and communication, to potential but hard-to-reach areas of the country and disadvantaged sections of the population. Access to financial services for most poor households in urban and rural areas has been made possible with rapid increase in mobile telephony.
Social development impact of the following is worth considering: (i) Health: both as part of human capital as well as quality of life (wellness service); building on the record of the 5th Phase Government establishment of new health facilities, improved availability and affordability of health care services and medication; (ii) Education: with much more emphasis, besides quality, universalising access, that is, enabling all children access to education opportunities, while exhorting society to keep searching for new knowledge/ information; (iii) Water and sanitation: (as social service and part of infrastructure); (iv) Social security and social protection: In general, actions that strengthens the resilience of poor and vulnerable households, social groups and communities to adverse events so as to enable them to sustain their livelihoods and avoid permanently sliding into vulnerability. Possibility of scaling up social protection in terms of coverage and packages shall reasonably be matched with the promise and possibilities of the beneficiaries taking part in the productive activities; (v) Youth Development/Employment Programmes a) Evaluate size, scope and impact (so far) of social funds, including those of handled by local government; assess effectiveness/payoff (for those who benefit) and rate of repayment (for future beneficiaries)’; b) Assess contribution of these social funds to private enterprise growth. How financially sustainable are they? Propose to make a follow up to know if beneficiaries ‘graduated’ and determine proper business support interventions; c) Consider easing access to such funds for graduates from primary, secondary and tertiary/technical educations; and d) Support to incubation and funding of tech-start-ups.
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(vi) Human settlements: considering, among other things, modern housing for an increasing number of rural and urban households; housing materials and construction technologies that are affordable, increase availability of planned and serviced plots; (vii) Public administration: to provide efficient services and reduce bureaucracy. Broad intervention areas to include law and order; specific governance interventions (anti-corruption) and peace and security; (viii) Gender mainstreaming: including, at the minimum, measures that address gender inequalities against women and girls; increased opportunities for girl education and training; swift measures against discrimination in matters of land ownership and inheritance, violence against women, and intensified voice against archaic cultural biases against women; and (ix) Protection of environment and climate change mitigation: including, at the minimum, proper land use and management, protection of water sources, use of water harvesting technologies, afforestation programmes, community-based natural resource management, enforcement of legislation against all forms of pollution, and against harmful extractive techniques; measures to mitigate against environmental disasters (e.g., flooding, drought and impact of influx of refugees), among others. Incentives for women and youth for interventions related to mitigating climate change.
Together, the social development interventions add to the quality of ‘economic growth’ and in turn, directly or indirectly reinforce economic growth.
4.6. Towards Specific Interventions
The framework chapter only highlights the major areas of interventions and how they relate or reinforce one another. The highpoints of the FYDP III – enhanced competitiveness as defined, deepening internalisation and trade and investment – shall rely on increased investments in human capital, especially intensified education and training for quality and relevant knowledge and skills in the science and technology and innovations. The details of specific actions and programmes are left to sectors that provide guiding policies and non-state actors, particularly the private sector that undertake actual production.
The unifying theme across all interventions is raising productivity and competitiveness through creation and deployment of high-level human capital and application of science and technological innovations to create ‘competitive advantages’ in goods and services for both external and domestic markets.
The FYDP III is part of on-going socio-economic development efforts and recognises needed continuity of interventions from the previous plans. Resources will be deployed to maintain high levels of good governance and the integrity of the country’s peace and unity, law and order and political stability. High impact investments, particularly infrastructure remain instrumental in determining the investment/business climate for private enterprise growth. Due attention will be paid to social and environmental sustainability. Social sustainability will entail interventions that ensure equitable access to ‘national assets’ (networks of infrastructure and social services) for human development and welfare.
72 “Realising Competitiveness and Industrialisation for Human Development ” 5 STRATEGIC INTERVENTIONS FOR COMPETITIVENESS, INDUSTRIALISATION AND HUMAN DEVELOPMENT 5 CHAPTER FIVE STRATEGIC INTERVENTIONS FOR COMPETITIVENESS, INDUSTRIALISATION AND HUMAN DEVELOPMENT
5.1. Introduction
This chapter highlights the main pillars, priority areas and sectoral interventions for the implementation of the Third National Five-Year Development Plan 2021/22 -2025/26. The main pillars of FYDP III are: Good Governance; Economic Growth; and Social Development. These pillars are the basis for FYDP III’s five priority areas which are: Realizing an Inclusive and Competitive Economy; Deepening Industrialization and service provision; Investment and Trade Promotion; Human Development; and Skills Development. Further, this chapter outlines the performance targets that will be achieved by 2026 as a result of the implementing FYDP III. These provide basis for effective implementation, monitoring and evaluation, as well as reporting. For clarity of presentation, the Chapter provides broad interventions in each of the five select priority areas, while more detailed specific interventions are outlined in Annex B and respective implied costs are presented in Annex F.
5.2 Interventions for Realizing an Inclusive and Competitive Economy
Interventions in this area include projects that will focus on: building a society that can compete regionally and internation- ally; stability of Macroeconomic Indicators; strengthening investment and trade environment; promoting innovation and transfer of foreign technology; and developing infrastructure and services for railways, roads, bridges, marine and air transport, ICT, energy, ports and airports.
FYDP III interventions have been set, taking into account aspirations of Tanzania Development Vision 2025, as translated into actionable programmes and projects by the Tanzania Long Term Perspective Plan, 2011/12- 2025/26 (LTPP). FYDP III has set the following targets for an inclusive and competitive economy.
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5.2.1 Competitive Economy
A competitive economy relates to the set of infrastructures, prudent institutions, macroeconomic stability and diffusion of information and communication technology that allow its enterprise base to thrive when exposed to competition from international peers. Competitive economy supports enterprise’s expansion for job creation and attracts local and foreign investment and trade. The different components of the enabling environment interact to create a vast and complex ecosystem that structures ideas and inclusive deci- sion-making, harnessing the interfacing of inputs and processes to produce outputs capable of sustaining challenges from other international actors. Generally, the concept is defined as a set of institutions, policies and factors which determine the level of productivity of a country.
Key interventions include:
(i) Ensure macro-economic stability; (ii) Construct, rehabilitate and promote connectivity of supportive and inclusivity in infrastructure; (iii) Improve institutional arrangements and regulatory frameworks; (iv) Promote innovation and application of ICT in service delivery; (v) Promote products, financial and labour markets; (vi) Inclusive promotion of skills, knowledge and technological transfer with provisions for youth, women and people with disability; and (vii) Promote business and financing architecture..
Table 12: Overall Competitiveness Indicators
S/N Indicator Target
2019/20 2025/26
1.1 Macroeconomic stability 86/141 40/141
1.2 Infrastructure 121/141 60/141
1.3 Institutions 97/141 50/141
1.3.2 ICT Adoption 133/141 70/141
1.3.4 Health 114/141 70/141
1.3.5 Skills 126/141 60/141
1.3.6 Product market 107/141 60/141
1.3.7 Labour market 86/141 40/141
1.3.8 Financial system 114/141 70/141
1.3.9 Market Size 73/141 45/141
1.3.10 Business Dynamism 107/141 50/141
1.3.11 Innovation Capability 123/141 50/141
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5.2.2 Promoting Macroeconomic Stability for a Competitive Economy
A competitive economy requires a stable, predictable and transparent macro economy capable of signalling and steering the direction of policies and decision making. Tanzania has enjoyed a steady growth of its economy in the last five years with an average GDP growth rate of 6.9 percent, inflation rate of 4.4 percent, and a declining budget deficit to 1.4 percent of GDP in 2019/20 from 3.4 percent in 2015/16. FYDP III seeks to promote policy and performance stability in the key macroeconomic variables of inflation rate, exchange rate, interest rate, balance of payments, fiscal deficit and external debt as well as promotion of external trade.
Key Interventions Include: (i) Strengthen monetary policy; (ii) Enhance administrative and fiscal measures for domestic revenue mobilisation; (iii) Strengthen and implement prudent public expenditure measures; (iv) Direct all current and future borrowings, particularly from commercial sources into projects with higher social and economic returns; (v) Promote exports for both traditional and non-traditional goods; (vi) Provide conducive environment for operation of domestic industries; (vii) Promote and support participation of private sector in strategic investments, including PPP projects; (viii) Enforce implementation of the blueprint for reforms of the business environment; (ix) Strengthen oversight of banking, capital and securities markets to safeguard against illicit capital flows and money laundering; (x) Establish PPP Centre and Public Private Partnerships Facilitation Fund (PPPFF); (xi) Promote venture funds and entrepreneurship centres; and (xii) Develop and Implement High Availability Data Centre (HADC).
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Table 13: Indicators for Macroeconomic Stability for a Competitive Economy
S/N Indicator Target
2019/20 2025/26
1.1 GDP growth Rate 5.2 8.0
1.2 Inflation Rate 3.3 4.4
1.3 Domestic Revenue as percentage of GDP 14.7 16.9
1.4 Tax revenue as percentage of GDP 12.9 14.4
1.5 Nominal Exchange Rate (TZ/USD 2,340 2,497
1.6 Budget deficit (%) -2.6 ≤ -3.0
1.7 Public Debt as a percentage of GDP 27.9 28.2
1.8 Growth of Broad Extended Money (%) ≥ 10.0 ≥ 10.0
1.9 Foreign Reserve (Months of Imports Cover) ≥ 4 ≥ 4
1.11 Average Time Taken to accomplish Customs Clearance - 1 0.25 Lodgement to Issuance of Release Order (days) at DSM Port
1.12 Percentage of taxpayer’s awareness on tax education programs 79 100
5.2.3 Unlocking Transport Infrastructural Competitiveness
Geography and size are two of Tanzania’s comparative advantages. Tanzania is the 30th largest country in the world with over 945,087 km2 of land and water bodies. It also borders 8 other countries, 6 of which are landlocked, and is a member of three regional trading blocs with a combined market size of over 600 million people and a total Gross Domestic Product of approximately US$ 1.0 trillion. Despite its land size, Tanzania is often characterized by limited linkages between its productive hinterlands and markets, which affect productivity, costs of doing business and ultimately the compet- itiveness. The total road network currently comprises of 91,049 km of roads of which 33,012 km are national roads (12,786 km are categorised as trunk roads, 20,226 km as regional roads) and the remaining 58,037 km as district, urban and feeder roads.
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Despite the huge potential available, existing infrastructural deficiencies inhibit Tanzania’s ability to leverage its comparative advantage by acting as a bridge economy that links the EAC and SADC regional markets, or realise its enormous potential as a logistics hub, linking the markets of the EAC and SADC regional trading blocs. Tanzania is therefore an ideal location for investments in market-seeking industries that target the emerging African markets in EAC and SADC. However, the challenges besetting the infrastructural sector in Tanzania extend beyond road and transport and include high-cost and unreliable water and electricity supplies. To unlock Tanzania’s infrastructural potential to attract all sorts of manufacturing and processing industries, there is a need to hasten implementation of the following priority interventions for each specific subsector:
Key interventions for Unlocking Transport Infrastructures
Roads (i) Complete construction of 2,500 km of paved roads; (ii) Decongest major cities; (iii) Construct 6,006 km of paved roads; (iv) Begin construction of 14 bridges; (v) Complete construction of 7 bridges
Railways (i) Continue the improvement of railwayinfrastructure of TAZARA, Central, Northern and Southern railway lines and Rehabilitate existing rolling stocks; (ii) Finalise upgrading of the Central line to SGR and Purchase rolling stocks for SGR;
Ports (i) Expand Sea ports of Dar es Salaam, Tanga and Mtwara as well as Inland ports (Mwanza, Kigoma, Karema and Itungi); (ii) Procure port handling facilities; (iii) Procure and rehabilitate marine vessels; and (iv) Construct Dry Ports along Dar es Salaam and Central Corridors.
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Aviation Meteorology (i) Airport Development and Maintenance (ii) Revamping of the Air Tanzania Company Limited (ATCL) (iii) Improvement of Meteorological infrastructure and services
Training Institutions in the Transport Sector Enhance Training Institution in the Sector
Regulators
(i) Automate Land Transport Services (ii) Strengthen Road and Railway Transport Safety (iii) Promote Land Transport Service Competition and Economic Efficiency (iv) Promote Rural Transport Services (v) Improvement of Maritime Safety (vi) Enhancing Regulation of Maritime Transport services (vi) Enhancing Economic Regulation (Promotion of effective competition and in the regulated maritime transport services); and (vii) Improvement of Shipping Agency services
5.2.4 Communication Sector
ICT infrastructure is an essential for smooth and cost-effective operation of business and facilitation of social services. Having reliable and easily accessible ICT infrastructure accelerate digital revolution enhanced by digital technologies. Digital technologies are now present in multiple sectors of the economy and social life, from telecommunications and finance, to governance, marketing and service delivery. The sector has to speed up deployment of ICT infrastructure to make digital revolution possible.
Key Interventions include:
(i) Expand or extend the National Telecommunication Broadband infrastructure and services in collaboration with service providers and other private sector stakeholders; (ii) Development of Physical Address system in all wards;
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5.2.5 Energy Sector
This is an enabling sector which supports manufacturing, transportation, trading and other social economic activities. The sector must be strategically enhanced by electricity generation, transmission, distribution, inter- connection, power trading and rural electrification, expediting petroleum and gas upstream, midstream and downstream activities and improving enabling environment for private sector investment in energy sector.
Key Interventions Include: (i) Strengthen the availability and reliability of electrical power by increasing generation capacity, transmission, and distribution networks; (ii) Construct and strengthen natural gas supply infrastructures for domestic, industrial and transport use; (iii) Promote and develop renewable energy technologies and projects (Biogas, Geothermal, LPG, Solar and Wind Energies) particularly for rural households; (iv) Strengthen sustainable use and management of oil and natural gas; (v) Develop renewable energy sources for cooking to mitigate climate change; and (vi) Strengthen the availability of oil and natural gas by enhancing petroleum exploration and development activities
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Table 14: Targets and Indicator for Infrastructural Development
S/N Indicator Target
2019/20 2025/26
1. Infrastructure (Position in Global ranking, out of 189 countries) 102 100
2. Roads 2.1. Road position in global ranking 86 55 2.2. Proportion of paved roads in total road network (%) 8.9 12
3. Railways 3.1. Railway position in global ranking 83 70 3.2. Length of Standard Gauge Railway in km (Central Line) 395.2 1,219 3.3. Volume of freight (cargo) transported by railway lines (tons) 1,569,536 2,162,258 3.4. Number of passengers transported by railway lines 972,000 2,272,682
4. Ports 4.1. Ports position in global ranking 72 50 4.2. Ship turn-around time (days) 3 2 4.3. Number of Ship calls at port per month 2,106 3050 4.4. Container Dwell Time (days) 7 5 4.5. Ship turnaround time (days) 2 2 4.6. Number of Dry Ports 2 3 4.7. Number of vessels handled 3,704 4,000 4.8. Ports throughput in Tonnage i) Import cargo to neighbouring countries handled (mil. Tons) 15.1 18.0 ii) Export cargo to neighbouring countries handled (mil. Tons) 6.3 10.0
5. Air Transport 5.1 Number of aircrafts bought 11 19 5.2 Number of airports with aeronautical ground lighting system 4 10 5.3 Number of cargo aircraft bought 0 1 5.4 Number of intercontinental range passenger aircraft Bought 2 3 5.5 Number of regional range passenger aircraft Bought 2 8 5.6 Number of ATCL’s operational aircraft 10 19
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S/N Indicator Target
2019/20 2025/26
5.7 Number of air professional cadre trained 61 1,359 5.8 Number of Airports with Airport Information Management System 1 14 5.9 Number of security equipment X-ray machine 46 71 5.10 Number of airports with perimeter security fence 9 27 5.11 Number of weather radars in place 5 7
6. Telecommunication 6.1. Percentage of Internet users 43 80 6.2. Percentage of broadband communication coverage 45 80 6.3. Percentage of broadband infrastructure installed at government 20 70 institutions and offices 6.4. Household with at least one member owning mobile phone (%) 82.6 87.8 6.5. Percentage share of the communication sector to GDP 1.5 3 6.6. Number of individuals who own mobile phones (million) 25.1 28.6 6.7. Number of households using physical address and postcode system 450,980 1,975,000 6.8. Number of public institutions using physical address and postcode 48,516 97,000 system 6.9. Proportion of population covered by a mobile network (%) 94 100
7. Energy 7.1. Electrical Power (generation in MW) 1,602.3 4,915 7.2. Electricity – Regions connected to national grid 23 26 7.3. Electricity – national grid length (in km) 5,896.3 9,351 7.4 Electricity – Per capita consumption (KWh) 137 220 7.5 Overall Power loss (%) 16.19 12.3 7.6 Population with access to electricity (%) 78.4 85 7.7 Household connected to electricity (%) 39.9 60
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5.2.5 Leveraging Institutions for Competitiveness
Institutions relate to formal and informal rules that enable and constrain the behaviour of enterprise actors. These include formal laws, policies, strategies, standing orders as well as informal norms and values that condition relations between the public and private sector, and inform key decision-making with respect to investment, marketing, distribution, sales, employment creation and production processes. FYDP III will address institutional bottlenecks in the country’s business environment to enable the harnessing of unique comparative advantages, with reduced risk of exposures to global economic uncertainties.
Key interventions include: (i) Strengthen the effectiveness of land administration and registration; (ii) Enhance access to land for strategic investors; (iii) Accelerate formalization of residential and commercial lands; (iv) Reduce land conflicts between investors and indigenous communities; (v) Promote good corporate governance and compliance to local and international standards; (vi) Facilitate implementation of National Financial Sector Development Plan 2019/20 – 2029/30 and Blue Print framework; and (vii) Rationalize tax and non-tax revenue sources and payment procedures;
Table 15: Overall Doing Business Targets
S/N Indicator Target
2019/20 2025/26
Ease of Doing Business 1.1 Ease of Doing Business (Global Ranking) 141/190 95/190 1.1.1 Starting a Business 162/190 91/190 1.1.2 Dealing with Construction Permits 149/190 87/190 1.1.3 Getting Electricity 85/190 50/190 1.1.4 Registering Property 146/190 55/190 1.1.5 Getting Credit 67/190 50/190 1.1.6 Protecting Investors 105/190 40/190 1.1.7 Paying Taxes 165/190 92/190 1.1.8 Trading Across Borders 182/190 102/190 1.1.8.1 Time to export (days) 8 < 4 days 1.1.8.2 Cost to export (US$) 1,175 600 – 800 1.1.8.3 Documents to export (No.) 8 < 5 1.1.9 Enforcing Contracts 71/190 14/190
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5.3 Interventions for Deepening Industrialization and service provision
Interventions outlined in this Chapter follow a broad definition of industry as comprising of Agriculture (International Standard Industrial Classification (ISIC) revision 4, Section A); Mining and quarrying (Section B); Manufacturing, (Section C); Electricity, gas, steam and air conditioning supply, (Section D); Water supply, sewerage, waste management and remediation activities, (Section E) Construction, (Section F); and Transport, (Section H). FYDP III has set the following targets for a competitive industrialised economy.
Table 16: Overall Industrial Sector Performance Targets
S/N Indicator Target
2019/20 2025/26
1.1 Overall industrial GDP real growth rate (%) 7.3 8.7 1.2 Share of the overall industrial sector to GDP at current prices (%) 29.6 31.1 1.3 Per capita Gross Domestic Product (GDP), nominal (US$) 1151 1,427 1.4 GDP Value Added at current prices (TZS Millions) 155,469,618 212,879,041 1.5 GDP Value Added at constant prices (TZS Millions) 132,685,131 180,513,619 1.6 Share of industrial exports to total export earnings (%) 14.6 20.2
5.3.1 Agriculture
Agriculture remains central to Tanzania’s industrialization and a source of livelihood for approximately 65.0 percent of the population. For the duration of FYDP III, efforts are directed to consolidate and further scale up the achievements so far recorded and explore opportunities afforded by the adoption of Climate Smart Agriculture approaches (CSA). Upgrading of the sector’s competitiveness will continue to:
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(i) Develop strong forward and backward linkages between agriculture sector and other economic sectors; (ii) Create favourable environments for the private sector to engage profitably in production and export of agricultural raw materials, semi-final and finished goods; (iii) Continue strengthening effective training and research programmes to benefit key stakeholders including youth, women and people with disabilities; and (iv) Ensure sustainable R&D on agricultural crops so as to integrate the value chain domestically and abroad. These interventions will increase value and productivity of agricultural production, employment creation, expand the diversification of products and strengthen the value chain in agricultural sector.
Application of Science, Technology and Innovation to Improve Productivity and Yields in Agriculture Sector The sector contributes to about 27 percent of the country’s GDP and about 24 percent to the total exports. Given the structure of Tanzanian economy, it is undoubtedly that the growth of the sector is directly proportional to the socioeconomic development prosperity and poverty reduction. However, the agricultural growth has been stagnant in Tanzania and therefore requires the use of technology and research to increase productivity and yields. Proper use of research and technology will increase yields, reduce food prices, reduce risks and increase profits and thus benefit citizens from the integrated system of the agricultural sector.
In order to increase productivity and efficiency in the agricultural sector, FYDP III will focus on the following areas;
Crops: The prioritized products are maize, rice, cotton, cashew nut, tea, coffee, tobacco, sisal, palm, wheat, soybean, cocoa, cassava, sugarcane, horticulture and sunflower.
Key Interventions: (i) Enhance Research and Development in strategic crops; (ii) Expand sustainable water and land use management through integrated land use planning and improvement of irrigation systems including construction of water reservoirs; (iii) Enhance productivity in strategic crop production; (iv) Strengthen competitive crop value chain and commercialization; (v) Encourage the use of ICT in operation of cooperatives; (vi) Encourage the use of ICT in operation of commercial agriculture (vii) Encourage the use of ICT in the provision of extension services; and (viii) Introduce modern crop management systems.
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Box 3: Horticultural Industry in Tanzania
The horticulture industry in Tanzania comprises of a variety of fruits, vegetables, flowers, spices, herbs and horticultural seeds. The leading producers of horticultural crops in Tanzania are Southern Highlands (Mbeya, Njombe, Iringa and Songwe), Northern Zone (Kilimanjaro, Manyara, Arusha and Tanga), Coastal and central areas (Morogoro and Pwani) as well as the Lake Zone. This sub sector employs about 4 million people. Further, medium and large-scale investors that either operate independently or have integrated smallholders as out-growers. It is estimated that by 2026, this sub sector will generate about US$ 2 billion through exports.
Horticulture contributes more than 40 percent of foreign exchange earnings. The result of this sector’s contribution is due to the integration of small-scale farmers to export value chains. About 90 percent of the horticultural products produced in Tanzania are consumed in the country with only small percentage (about 10 percent or less) exported. With a small percentage (10) of exports, horticulture faces the challenge of inadequate crop storage facilities, accreditation laboratories and specialists in plant, spice, fruit and seed technology.
The Third National Five-Year Development Plan 2021/22 – 2025/26 aims to address the challenges of horticulture by investing as well as creating an enabling environment for the private sector to invest in storage, transport and logistics, accreditation laboratories and building capacity to the existing professionals.
Livestock: Key interventions include: (i) Increase the number and capacity of processing industries for livestock products (hides/skins, milk and meat); (ii) Facilitate identification, registration and traceability of livestock products for promoting export trade; (iii) Construct and improve primary, secondary and border livestock markets, modern abattoirs and the construction of milk collection centres; (iv) Sensitize and facilitate livestock keepers to improve their herds by raising livestock breeds that produce high quantity and quality of milk, meat and eggs; (v) Strengthen NARCO by improving 5 ranches (Kongwa, Ruvu, Kalambo, Missenyi and West Kilimanjaro) in order to increase productivity in meat value chain; (vi) Strengthen animal diseases surveillance systems; (vii) Facilitate availability and affordability of vaccines; (viii) Facilitate dipping of livestock for parasite control; (ix) Improve the management and use of fodder for livestock; (x) Increase acreage of grazing land demarcated, surveyed and developed;
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(xi) Promote investment in compounded animal feeds and feed additives industries; (xii) Increase the number of water infrastructure for livestock; (xiii) Develop and disseminate modern technological packages in livestock product production, productivity and marketing. Facilitate research in livestock productivity, livestock products and conservation of livestock breeds and strengthen livestock gene bank; (xiv) Improve livestock training institutions and curriculum; and (xv) Increase the number of extension officers and facilitate availability of improved extension service delivery at village and ward levels.
Box 4: Leather Industry
In the year 2020, Tanzania had ten (10) leather processing factories, out of five (5) working factories, three (3) factories process leather up to the middle stage (wet blue) and two (2) processing leather up to finished leather. In addition, five (5) factories do not operate due to various operational challenges. The installed processing capacity of these industries is 2,459,000 pieces of cattle hides and 7,628,000 pieces of ship/ goat skins equivalent to 60.6 percent of the installed capacity. Leather industry assessment shows that, domestic production of leather shoes from existing industries is approximately 1,200,000 pairs of shoes per annum while current (year 2020) demand is approximately 54.2 million pairs of footwear. Significant investment is needed in the leather industry, as there are huge opportunities in the footwear business, handbags, belts, jackets and wallets.
Leather industry challenges in Tanzania include but not limited to; illegal trade of exporting raw leather; poor quality of skins produced due to bad animal husbandry; lack of modern abattoirs; lack of skilled animal skinners; non-compliance with the rules and regulations; use of improper flaying knives; and the use of old technologies.
To address the challenges of the leather sub-sector, the Government has appointed and facilitated a total of 113 leather inspectors and 735 animal skinners. Other measures include: facilitate capacity building to 10 leather traders on leather grading; provide subsidies for livestock dips; control smuggled and fraudulent leather trade by levying 80 percent of raw leather exports and 10 percent of the export of wet blue leather; and construction of Kilimanjaro International Leather Industries Co. Ltd as well as 30 modern abattoirs.
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Fisheries
(i) Transformation of the fisheries will include modernization of the sector through intensification of the blue economy potentials in both marine and fresh waters. Sector priorities include freshwater fishing, sea and deep-sea fishing, aquaculture, marine and freshwater conservation. Facilitate fishing activities through procurement of fishing vessels and construction of fishing harbour; (ii) Strengthen Fisheries institutional capacity including, revival of Tanzania Fisheries Corporation – TAFICO; (iii) Support private sector to establish and rehabilitate fishing industries; (iv) Conserve marine and freshwater fisheries protected areas; (v) Protect critical habitats and conservation of endangered and threatened aquatic species; (vi) Support investment in fisheries and aquaculture infrastructure and facilities including promotion of commercial aquaculture production; (vii) Ensure access to capital, expertise, skills, knowledge and fishing gears to small-scale fishermen and women through their respective social groups; (viii) Promote research-extension-fisher folk/aqua farmer linkages; (ix) Ensure fish and fishery products quality, safety and standards; (x) Improve aquatic resources quality assurance laboratories and fish landing sites; (xi) Support marine spatial planning and sustainable use and management of marine resources; and
Promote eco-tourism in fisheries Marine Protected Areas.
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Table 17: Performance Indicators and Targets for Implementation of Agriculture
S/N Indicator Target
2019/20 2025/26
1 Agriculture 1.1 Average Growth rate (%) 5.0 6.1 1.2 Percentage share to GDP (current prices) 25.7 23.4 1.3 Percentage share on Total export Earning 13.0 19.0 1.4 Percentage Share on Total Employment 65 60 1.5 Productivity (% growth) 4.0 4.7 2. Crops 2.1 Average Growth rate (%) 5.1 5.7 2.2 Percentage share to GDP (current prices) 14.2 12.3 2.3 Percentage share on Total export Earning 13.0 19.0 2.5 Hectare under irrigation 694,715 1,200,000 2.6 Student enrolment increased 2,600 3,600 2.7 Number of extension officers increased 6,704 20,538 2.8 Certified Seed production increased 71,000 140,000 2.9 Percentage Decrease in postharvest loss 35 17.5 2.10 National reserve capacity increased 501,000 700,000 2.11 Volume of total horticultural production per year (tons) 6,556,102 14,600,000 2.12 Volume production of the traditional commercial crops (tons). 794,500 1,583,200 2.13 Percentage of agricultural land under mechanization services along the 47 75 value chain 2.14 Number of Large-Scale Farms (Block Farms established 110 200 2.15 Number of Industries owned by Cooperatives 113 183 2.16 Cooperative using formal market system increased 3,001 4,039 2.17 Members in Cooperatives Societies (Millions) 5.9 14.5 2.17 Food sufficiency ratio (%) 124 130
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S/N Indicator Target
2019/20 2025/26
3. Livestock 3.1 Average Growth rate (%) 5.1 6.5 3.2 Share to GDP (at current prices) 7.0 6.8 3.3 Livestock mortality rate 27 12 3.4 Livestock morbidity rate 6 3 3.5 Livestock Dipping rate 70 85 3.6 Livestock vaccination coverage rate 25 50 3.7 Endogenous herd milk average productivity (Litres) 2 4 3.8 Mature Endogenous herd meat average productivity (Carcass weight 75 130 in Kg) 3.9 % of quality hides and skin 10 50 3.10 Meat Production (Tons in ‘000’) 702 951.7 3.11 Milk Production in (Litres in billions) 3.01 4.3 3.12 % of Milk Processed 5 14 3.13 Meat Processing (Tons) 286 500 3.14 Hides and skin Processed (Tons) 1,190 9,210.6 3.15 Meat exports (Tons) 692 7,200 3.16 Finished Leather exports (Tons) 25.5 92 4 Fisheries 4.1 Average Growth Rate (%) 6.3 8.4 4.2 Share to GDP (at current prices) 1.8 1.9 4.3 Percentage share on Total Export Earnings 3.0 4.5 4.4 Per Capita Consumption (kg) 8.5 10.5 4.5 Contribution to the National Animal Protein intake 30 35 4.6 Fisheries production (Tons) 497,567.28 600,000 4.7 Number of fish processing industries 12 17 4.8 Number of Aquaculture Development centres (ADC) 9 12 4.9 Fish feed production (Tons) 464 2,500 4.10 Number of Fisheries Extension Officers 657 1,850
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5.3.2 Manufacturing
Innovation is among important features of enterprise development through its coordination of capabilities to generate and adopt new technologies and new ways to organise work in a manner that facilitates market free entry and exit. Building innovation capabilities and competitive enterprises remains key to leveraging the manufacturing sector’s ability to act as a source and recourse for employment, investment and trade. Innovation relates to the ability to generate and absorb knowledge that inspires the adoption of new (and distinct) production, processing and marketing methods, processes and routines that add value to existing structures. Innovation also applies to the adoption or adaptation to value-adding organisational and business models.
Manufacturing sector includes: Special Economic Zones and Export Processing Zones; Micro, Small and Medium Enterprises Parks; Petro and Chemical Industries; Agro-Industries; Coal for Industries and Households; Uranium for energy plants; Iron and Steel; and Automotive Industry.
Key Interventions for Manufacturing include (i) Promote investment and trade for SEZs/EPZ; (ii) Develop regional industrial parks for trade, logistics and agro-processing; (iii) Promote micro, small and medium entrepreneurs; (iv) Improve entrepreneurs’ IDs to increase access to finance; (v) Provide entrepreneurship training and promote start-ups eco-system; (vi) Promote production of Sodium Carbonate, glass, Chlor- Alkali products, Pure Aluminium and associated products, Helium Gas and other chemicals; (vii) Promote and support agro – processing industries, particularly leather and edible oils industries; (viii) Establish Food Processing Training Cum Production; (ix) Promote environmentally friendly technology; (x) Promote atomic energy and nuclear technology; (xi) Develop Iron and Steel technologies from locally available ore deposits and revamping of privatized industries; (xii) Promote national champions (competitive big businesses) in the following industries: agriculture and agro-processing (horticulture, aquaculture, apiculture, sugar, textile and garments, leather); chemicals (petrochemicals and other chemicals), pharmaceutical, transport, building and construction; (xiii) Strengthen Tanzania Automotive Technology Centre; and (xiv) Strengthen R&D in manufacturing.
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Table 18: Target and Indicator Trends for Manufacturing
S/N Indicator Target
2019/20 2025/26
1.1 Share of GDP at current prices (%) 8.2 8.5 1.2 Real Growth rate (%) 4.8 6.8 1.3 Share of total employment (%) 6.75 12.8 1.5 Share of export earnings (%) 17.1 19 1.6 Share of low tech (%) 35 42 1.7 Share of medium tech (%) 28 39 1.8 Share of high tech (%) 8 10 1.9 Number of exporting firms 1,180 2,114 1.10 Percentage Contribution to Total Export 16.9 (2019) 24
Box 5: Commercialization and Scaling-Up Technology
Design, Development and Commercialization of Medical Equipment The Government has strengthened health care infrastructure by building more than 9,104 facilities in the country. Improvements in health care infrastructure have increased the demand for medical equipment and tools. Increasing demand for medical equipment and tools is an investment opportunity for local and foreign entrepreneurs. On that basis, FYDP III will focus on creating an enabling environment to attract investment and technology transfer to this key sector.
Commercial production of hemp and sugarcane crop Industrial construction has continued to be given priority to increase the National capacity for self-suf- ficiency and to promote the domestic market of raw materials for agricultural products, livestock, fisheries, forestry, minerals and precious stones. Along with increasing self-sufficiency and boosting the domestic raw materials market, industrial construction is key to creating jobs, technology transfer and increasing exports of processed goods. Over the past decade, the value chain has grown for some crops and products, especially sugar and hemp through the TEMDO project. The TEMDO project involves the development of state-of-the-art technology for the production and processing of sugarcane and hemp products.
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5.3.3 Mining
The mining sector has now placed Tanzania in the higher ranks among African economies in terms of FDI attraction and non-oil economies. Tanzania is endowed with a variety of industrial minerals and precious metals, including iron ore, soda ash, coal, clay soil, uranium, gold, diamond and tanzanite, a rare gemstone so far worldwide being found only in Tanzania. FYDP III seeks to promote natural resources-based industrialisa- tion.
Key Interventions Include (i) Strengthen the management and control of large-scale and medium scale mining; (ii) Empower small-scale miners including youth and women to participate in feasible mining activities by licensing areas with basic geological information, necessary training on productive mining, technologies and equipment and mining business through STAMICO; (iii) Strengthen the Mining Commission, Geological Survey of Tanzania (GST), Tanzania Gemmological Centre (TGC) and Tanzania Extractive Industries Transparency Initiative (TEITI); (iv) Promote mineral value addition and beneficiation; (v) Identify, promote and facilitate extraction of rare minerals; and (vi) Strengthen Corporation and Mineral Markets, Demonstration Centres and Centres of Excellence
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Table 19: Indicators and Targets for Implementation of Mining Sector Interventions
S/N Indicator Target
2019/20 2025/26
1.1 Average Growth Rate (%) 6.9 7.7 1.2 Share to GDP (%) 5.6 10.0 1.3 Total Foreign Exchange Earnings (USD Million) 2,997 5,505 1.3.1 % of raw export 15 5 1.3.2 % beneficiated 85 95 1.4 % Share on Foreign Exchange Earnings 50.3 50.5
5.3.4 Construction
Construction is one of the few fastest growing sectors and contributes the largest share of GDP. The construction industry includes road infrastructure, bridges, railways, ports, airports and residences. During the implementation of FYDP III, the Government will continue to strengthen and build basic infrastructure to stimulate economic activity.
Key Interventions Include (i) Provision of special development projects to local contractors; (ii) Enhance Skills Development; (iii) Enhance training and capacity building programmes for local professionals (Contractors, Engineers, Architect and Quantity Surveyors); (iv) Create Information Window on Engineering Practices; (v) Construct Government buildings and public servants’ houses; (vi) Strengthen inland, sea and air transport infrastructure and facilities; and (vii) Formalization and Strengthening of Contractors Assistance Fund.
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Table 20: Performance Indicators and Targets for Construction Sector
S/N Indicator Target
2019/20 2025/26
1.1 Average Growth Rate (%) 9.0 9.9 1.2 Share to GDP (%) 14.8 16.7 1.3 Percentage market share of domestic companies 35 60 1.4 Number of employments created in development projects 23,585 30,129 (2024/25) 1.5 Percentage Share in Total Employment 14.7 18.8
5.3.5 Environmental and Natural Resources Management
The environment and natural resources are a national asset and the basis for sustainable development. The government will continue to strengthen the systems of environmental protection and sustainable use of natural resources for the benefit of present and future generations. Sustainable use, protection and well-being of wildlife, forests, rivers, lakes, oceans, valleys, mountains, habitats, land, minerals and precious stones are among the key areas to be considered in this Plan.
Key Interventions Include
Specific interventions geared towards the realization of the targets are as follows: (i) Promote renewable green energy technologies (biogas, LPG, Solar Energy), and Climate change adaptation; (ii) Deterioration of aquatic systems; (iii) Biodiversity conservation; (iv) Ensure safe use and handling of modern biotechnology; (v) Strengthen the national capacity for addressing climate change Adaptation and mitigation measures; (vi) Reduced land degradation; (vii) Minimize environmental pollution and resultant adverse effects on the environment and human health; (viii) Enforce Environmental Management Act, 2004; (ix) Improve institution coordination; (x) Develop and implement strategies to combat poaching, illegal harvesting and trade of wildlife, forest, bee and antiquities resources in the country; (xi) Increase contribution of Beekeeping sub sector in the economy; (xii) Improve infrastructure in Forestry and Beekeeping Institutions; and Promote stakeholder’s engagement in development and management of plantation forest resources for conservation and economic growth.
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Table 21: Performance Indicators and Targets for Natural Resources and Environmental Protection
S/N Indicator Target
2019/20 2025/26
1.1 Average Growth rate (%) 4 7 1.2 Percentage share of GDP from sustainable utilization of forest, water 4 7 and marine resources 1.3 % Contribution from sustainable tourism to GDP 6 11 1.5 Area under Community Plantations forest and woodlots increase (Ha) 120,000 160,000 1.6 Reduced Deforestation Rate (Ha) 469,420 234,710 1.7 Area of commercial forest Plantation established (Ha) 500,000 550,000 1.8 Increased consumption of alternative charcoal in urban areas (Tones) 100 100,000 1.9 % of large projects complying with approved Environmental and 90 120 Social Impact Assessment (EIA) and audit regulations 1.10 Loss of biodiversity reduced (%) 30 20 1.11 The cost incurred due to climate impact reduced (%) 1 0.9 1.12 Land degradation reduced (%) 16 14 1.13 Environmental pollution reduced (%) - 5
5.3.6 Science, Technology and Innovation
Tanzania has enjoyed a rapid utilisation of evolving digital technologies in communication and production to leapfrog competences in various sectors of the economy. Digital technologies are now present in multiple sectors of the economy and social life, from telecommunications and finance, to governance, marketing and service delivery. A competitive production and trading system can be established through leveraging existing digital technologies to create dynamic value chains and provide a reliable market for production and trading in the primary sectors of agriculture, livestock, forestry and minerals extraction. Effective utilisation of digital technologies will add to the scope and range of domestic production for self-reliance, as well as, enhance export trade capacity and growth with employment.
In this context, FYDP III will prioritise the harnessing of development possibilities presented by big data, automation, Artificial Intelligence (IA), and robotization
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Key Interventions include: (i) Promote increased utilisation of development possibilities offered by the internet while protecting against gender-based Internet abuses especially against children; (ii) Strengthen the operational effectiveness of national communication sector institutions; (iii) Establish ICT Centres of Excellences, support local R&D in ICT, ICT innovation, promotion of new products, processes and patenting (innovation), and register ICT technicians and professionals; (iv) Encourage investment and local manufacturing of ICT equipment and its end life management; (v) Secure international scientific, technical and innovation cooperation agreements; (vi) Strengthen Collaboration with Private Sector and DPs in promoting STI;
Table 22: Target Indicators for Innovation, Science and Technologies
S/N Indicator Target
2019/20 2025/26
1. R&D Expenditure 1.1. Share of R&D expenditure in GDP (%) 0.8 1 1.2. Total Expenditure (TZS billion) 90.2 139.7 1.2.1. Of which on agriculture (%) 38.0 40.0 1.2.2. Of which on manufacturing (%) 40.0 42.8 1.2.3. Of which on mining, construction & utilities (%) 13.5 10.6 1.2.4. Of which % on services 8.5 6.6
2. Institutional Technological Capabilities 2.1 R&D expenditure by public sector (%) 68.3 72 2.2 Number of qualified researchers 9,556 12,639 2.3 R&D institutions with foreign partner institution 22 32 2.4 Number of firms participating in TIUMP 80 200 2.5 Number of firms practicing KAIZEN 132 140 2.6 share of engineers in total tertiary government disbursements for 1,567 2,660 training programmes
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Box 6: Promoting Digital Economy in Tanzania
Digital economy or Internet Economy, the New Economy, or Web Economy is an economy based on digital computing technologies. Digital economy creates many new economic opportunities hence plays a crucial role in any country including Tanzania. The digitalization is transforming economies on various fronts including the nature of markets and products, technic, service delivery, the scale of capital and human capital requirements. It is also enhancing productivity, exposing companies to new ideas, technologies, new management style and business models, and creating new channels of market access.
In Tanzania digital economy has contributed in better service delivery, efficiency in revenue collections, and increased efficiency in payments ecosystem, enhanced management of human capital and creation of employment opportunities. Government of Tanzania has undertaken various Digital Economy initiatives including the National ICT Broadband Backbone (NICTBB), National Internet Data Centre (NIDC), National ICT Policy (2016) and its Implementation Strategy, e- Government opera- tionalization, National Cyber Security Strategy 2016 and Financial Sector Development Master Plan 2020/21 – 2029/30. These initiatives are in-line with the National Development Vision 2025 and the Five-Year Development Plans. Given the theme of the FYDP III, competitiveness, industrialization, services provision and trade can be realized by immense adoption of digital technologies. Thus, among the priority areas of FYDP III is building country’s competitiveness in which digital revolution is an integral element of the particular priority intervention. Therefore, adoption of digital technologies in the industrial production lines is expected to increase efficiency, productivity and the economies of scale with improving efficiency in doing trade. Increased production will feed to the domestic and export markets and the economies of scale will therefore make the Tanzania exports competitive in the global markets.
The Fourth Industrial Revolution is a global phenomenon, thus inevitable. It builds in part on the collection and use of digitized data (Drones, IoT, AI, Big Data for example). Therefore, there is the need for Government and industry to understand and embrace digital technology to become ever stronger. Precision agriculture, integrated supply chain, just-in-time production, access to finance are just a few areas which are being transformed by the application of digital technologies and data analysis. Tanzania can and will participate actively in the digital economy. Furthermore, it was not too long ago that Tanzania had no modern and adequate telephone networks. Now, the nation is booming with mobile phones, application developers, network providers, mobile money and online services. It has much of the telecommunications infrastructure to support adoption of Artificial intelligence, big data analytics, block chains, 3D printing and the like, which is important given the productivity gains these technologies offer and the fundamental change they can bring to Tanzania. Globally, technology is changing rapidly. Various countries have transformed their economies through digital migration in which socio-economic activities are digitalized by adoption of digital technologies. However, it is not only adoption but also supply of digital goods and services, integration is fostered by cross-border data flows, and quality of life needs to reflect the job opportunities and the required skills and education.
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Hence, Tanzania needs to keep up with the pace for it to be competitive and thus digital migration is overemphasized. Recent economic projections for Tanzania shows that the economy is expected to grow at an annual average of 6.9 percent in the medium-term horizon (2021–2025). Therefore, adoption and adaption of digital technologies in the economy will ultimately boost economic growth and catalyse realization of the growth projections. Digital eruption has already led to the creation of enormous wealth in record time, but this is highly concentrated in a small number of countries, companies and individuals. Meanwhile, digitalization has also given rise to fundamental challenges for policymakers in countries at all levels of development. Harnessing its potential for the many, and not just the few, requires creative thinking and policy experimentation. And it calls for greater global cooperation to avoid widening the income gap and digital divide.
The growth of digital economy, however, has brought significant transformation in the mode of doing business through internet by presenting new business models such as e-commerce and online advertising. The transformation has created significant challenges in taxation arena Currently, there is no nation-wide framework to guide digital economy initiatives in the country. Digital activities are pursued but not within integrated action plans, policies and strategies. Consequently, the FYDP III paves the way for Tanzania to leverage digitalization in growing her digital economy pie and, most importantly, in accelerating economic transformation.
5.3.7 Tourism Sector
Tourism accounts for more 17% of GDP and 25% of foreign earnings. The sector possesses significant potential to contribute to the national economy and foreign receipts on account of the unique natural attractions present in the country relative to elsewhere on the continent. The tourist attractions present in Tanzania include national parks and game reserves, plants, mountains, valleys, waterfalls, and coastal areas. To promote sector competitiveness and linkages, FYDP III is prioritising the development and implementation of a clear tourism legal and regulatory frameworks and strengthening public-private dialogue and collaboration.
Key Interventions include: (i) Promote new tourism products development and diversification for sustainable growth; (ii) Promote southern tourist circuit as alternative to other circuits
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Table 23: Targets and Indicators for Tourism Sub-sector
S/N Indicator Target
2019/20 2025/26
1.1 Contribution to GDP (%), current prices 17.5 11 1.2 Real growth rate (%) 1.5 2.0 1.3 Number of tourists 1,527,230 5,000,000 1.4 Average number of nights spent by tourist 13 14 1.5 Average expenditure per tourist per day (non-package/package) (US$) 216/379 326/455 1.6 Employment (number) 1,500,000 1,750,000 1.7 Share of foreign exchange earnings (%) 25 27 1.8 Earnings from tourists (US$ billion) 2.6 6.0
5.3.8 Information, Sports and Creative Arts
The entertainment industry is one of the rapidly growing tertiary economic activities in Tanzania, attracting massive youth labour force in particular. The industry, sometimes known as show business or show biz, is part of the tertiary sector of the economy and in Tanzania is broadly defined to include a large number of sub-industries devoted to printing, broadcasting and entertainment. In the popular dialect, the term show biz in particular connotes the commercially popular activities such as visual arts (antiques, crafts, paintings, sculpture and photography); performing arts theatre (dance, circus and festivals); film and video; music (recorded and live performances); design (fashion design, graphic design, interior design, product design); drawing; painting; sculpture and architecture, sports and other forms of cultural entertains. Tanzanians, particularly urban dwellers, are increasingly spending more time and money on entertainment and projections for the coming years with a steady growth in their disposable income, suggests entertainment industry in Tanzania and the regional market of East and Central Africa.
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Key Interventions include: i. Promote strategic investments in creative industry; ii. Strengthen protection of artistic works, literary works and folklores; iii. Develop and implement capacity building programmes to information, culture, arts and sports personnel/ stakeholders for effective management, compliance, professionalism and improvement of products and services; iv. Promote R&D on culture, traditions and values aiming at restoring, promoting and preserving them for the current and future generations; v. Construct a new Tanzania Information Auditorium with a press center and recording studios in Dodoma; vi. Implement the African Liberation Heritage Programme with focus on identifying and restoring the history of liberation struggles in Africa and construction of a regional centre for the programme; vii. Construct a film complex with modern film facilities such as cinema halls, film studios, movie theaters and movie shops; viii. Strengthen National Kiswahili Council and promote Kiswahili regionally and internally; ix. Construct modern football ground in Dodoma and improve Dar es Salaam Sports Complex (Benjamin Mkapa and Uhuru Stadiums); x. Promote sports at all levels including traditional sports; xi. Construct two Arts and Sports Arena with above 10,000 sitting capacity in Dodoma and Dar es Salaam to facilitate indoor sports, artistic performances and international sports and arts festivals that will be held in Tanzania; xii. Develop and protect areas earmarked for culture, arts, sports and leisure activities; xiii. Establish Journalists Accreditation Board, Independent Media Council and Media Training Fund in accordance to the requirement of Media Services Act No. 12 of 2016; xiv. Construct Sanaa House in Dodoma that will host National Arts Council, Copyright Society of Tanzania (COSOTA), Tanzania Film Board, National Kiswahili Council and other related institutions; xv. Construct national culture complex at Kiromo, Bagamoyo; xvi. Extend coverage of Tanzania Broadcasting Corporation (TBC) radio and television xvii. Construct TBC headquarters in Dodoma; xviii. Strengthen Tanzania Standard Newspapers (TSN) with focus on installation of a new printing facility of TSN in Dodoma and improvement of products and services; xix. Improve training infrastructure and facilities at Bagamoyo Arts and Culture Institute and Malya Sports Development College including construction of classrooms, dormitories, library and establishment of Sports Academy
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Table 24: Targets and Indicators for Creative Industries
S/N Indicator Target
2019/20 2025/26
1.1 Number of districts with TBC coverage (TBCFM and TBCTaifa) 102 161
1.2 Number and type of additional and improved sports infrastructure 63 72 countrywide 1.3 Two Arts and Sports Arena in Dodoma and Dar es Salaam 0 2 1.4 Number of infrastructures constructed/renovated at Malya Sports 35 40 Development College and Bagamoyo Institute of Arts and Culture (TaSUBa). 1.5 Number of films and music approved for distribution/ Male 12,518 Male 19,301 consumption. Female 2,785 Female 6,434 Total 15,303 Total 25,735 1.6 Number of registered artists in creative activities. 3,462 8,666 Tanzania Information Auditorium in Dodoma. 0 1 1.7 Sanaa House in Dodoma 0 1 1.8 National culture complex at Kiromo, Bagamoyo 0 1 1.9 TBC headquarters in Dodoma; 0 1 1.10 New printing facility of Tanzania Standard Newspapers in Dodoma 0 1 1.11 Number of press conference on matters relating to implementation 64 144 of government policies, programmes and projects. 1.12 Number of cinema and recreation halls registered 442 709 1.13 Regional centre for African Liberation Heritage Programme 0 1 1.14 Number of practitioners in creative industry trained 2,852 4,297 1.15 Number of international sports competitions/tournaments 178 350 organized and participated. 1.16 Number of permits issued to clubs and individuals’ athletes. 178 400 1.17 A film complex. 0 1 1.18 Number of professional athletes playing abroad. 54 150 1.19 Number of foreigners undertaking film production in Tanzania. 359 1,059 1.20 Number of newspapers produced by Tanzania Standards 4,158,642 4,659,975 Newspapers (TSN) 1.21 Number of artists/creative industry practitioners/groups 1,620 1,755 performing overseas.
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S/N Indicator Target
2019/20 2025/26
1.22 Number of overseas artists/creative industry practitioners 720 2,312 performing in Tanzania. 1.23 Overcoming piracy in films and music activities. 3,050,638 1,000,000 1.24 Total Amount of royalties provided to artists and the number of 220.01 1,225.00 artists benefited (Tshs Million)/Artists 1,934 2,100 1.25 Number of Kiswahili experts working outside the country. 56 656 1.26 Number of Kiswahili publications sold overseas. 200 700 1.27 Number of international cultures, arts and creative Awards 47 130 organized and participated. 1.28 Number of foreign culture and arts practitioners participated in 5 20 TaSUBa annual international Culture and Arts festival. 1.29 Number of students enrolled at Malya Sports Development Male 190 Male 900 College. Female 110 Female 400 Total 300 Total 1,300 1.30 Number of students enrolled level at Bagamoyo Arts and Culture 350 1,200 Institute. 1.31 Journalists Accreditation Board 0 1 1.32 Independent Media Council 0 1 1.33 Media Training Fund 0 1 1.34 Number of Ministry personnel capacitated in information, culture, Male 1 Male 20 arts and sports sector Female 1 Female 20 Total 2 Total 40
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5.3.9 Financial Services
Banking and Payment Services
Banking and payment services play a key role in mobilizing savings and allocating credit to various sectors of the economy and in the process catalyse productivity, competitiveness and linkages in the sectors. Banking and payment services enable enterprises and households to engage in production, processing and trading safely and efficiently. Further, these services enable producers and enterprises to cope with economic uncertainties by hedging, pooling, sharing and pricing risks. To limit economic risks, increase efficiency and contribution of the sub sector to national income, FYDP III will focus on the five key areas of: Increasing access and usage of formal banking and payment services; strengthening consumer protection; reduce vulnerability of the banking and payment system; promoting advancements in technology and innovation; and developing a system to easy claims, complain handling and settlement.
Key Interventions Include: (i) Develop and implement inclusive banking and payment services’ awareness and education programmes; (ii) Reduce costs of accessing and utilising formal banking and payments services; (iii) Promote awareness and compliance to international technical regulations and standards; (iv) Develop and promote local demand driven banking and payment services; and (v) Develop robust complaints and claims handling system.
Table 25: Indicators and Targets for Banking and Payment Sub-Sector
S/N Indicator Target
2019/20 2025/26
1.1 % of adult population using bank services 17 33 1.2 Bank deposits/GDP (%) 17 21 1.3 Bank assets/GDP (%) 26 33
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Insurance Sub-Sector
Insurance is a tool used to protect businesses, investment, capital, assets and lives against risks associated with undue disasters and unforeseen challenges. To guard against adverse effects of risks and increase the sub sector’s contribution to the economy, FYDP III is focusing on three priority areas of insurance subsector which are: creating awareness programmes and public sensitization of public on insurance matters; developing local demand driven products; and developing a system to easy claims, complain handling and settlement.
Key Interventions Include: (i) Create and conduct inclusive public awareness programmes; (ii) Develop and promote local demand driven insurance products; and (iii) Develop robust complaints handling system.
Table 26: Indicators and Targets for Insurance Sub-Sector
S/N Indicator Target
2019/20 2025/26
1.1. Contribution to GDP (%) 0.7 2 1.2. Real growth rate (%) 28.5 29.1 1.3. Level of population awareness on insurance matter (%) 36 78 1.4. Customer satisfaction/protected (%) 70 80 1.5. Number of demands driven insurance products introduced to the 2 7 market 1.6. % of adult population using insurance services 6 18 1.7. Insurance Assets to GDP (%) 0.9 3 1.8. Number of populations using insurance products 3,582,000 12,278,000
Capital Market Sub-Sector
Capital Markets are part of the financial system in the economy. They facilitate mobilisation of financial resources in terms of either equity, debt or units of collective investment schemes for financing long term development projects, thus fuelling economic development and growth. The capital markets are therefore important in providing appropriate mechanisms for channelling resources from investors and efficiently allocating them to productive sectors of the economy which stimulate economic growth and development.
Key interventions include: (i) Develop and implement capital market awareness and education programmes; (ii) Promote development of affordable demand driven financial products and services;
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(iii) Strengthen policy, legal, institutional and regulatory frameworks; and (iv) Develop affordable financial services distribution channels.
Table 27: Indicators and Targets for Capital Market Sub-Sector
S/N Indicator Target
2019/20 2025/26
1.1 % of population invested in the capital markets 1.3 3 1.2 Number of listed companies 28 35 1.3 Domestic Market capitalization (% of GDP) 7.4 10
5.3.10 The Blue Economy
The ‘Blue Economy’ encourages sustainable use of the water or ‘blue’ resources. It refers to the economic activities conducted on shores, rivers, banks, lakes, fresh waters, water courses, groundwater, oceans, seas, seabed, etc. Productive activities that rely on water-based resources include fishing, offshore prospecting and extraction of oil and gas, tourism, fish farming, aquaculture, shipping and maritime transport, seabed extractive industries, marine biotechnology, bio prospecting, and offshore renewable energy. Further, robust systems of maritime peace and security are key to attracting investment in water-based resources. Therefore, in implementing this Plan, the Government will put in place an enabling business and investment environment in order to attract local and foreign investors so as to increase the contribution of this sector in the national economy.
Key Interventions Include: (i) Continue with facilitation of research to ascertain investment and production opportunities of water-based resources; (ii) Promote investment and utilisation of science and technology in economic activities based on water resources; (iii) Strengthen coordination of relevant infrastructure research, investment, production, conservation, tourism, shipping and other maritime transportation services; (iv) Promote civic participation in the exploration of economic opportunities resulting from water-based resources;
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(v) Strengthen systems of defence and security of water-based activities and services; and (vi) Strengthen regional and international institutional cooperation in trans-boundary water resource management.
Box 7: Promoting Blue Economy in Tanzania
The ‘Blue Economy’ relates to economic activities conducted on shores, rivers, banks, lakes, fresh waters, water courses, groundwater, oceans, seas, seabed, etc. These include fishing, offshore prospecting and extraction of oil and gas, tourism, fish farming, aquaculture, transportation and shipping, offshore renewable energy, aquaculture, seabed extractive industries, marine biotechnology and bio prospecting. If well utilized, the blue economy can be the engine of economic growth, source of food and employment, the basis of socio-economic development and industrialization. Yet despite this enormous potential, statistics indicate that fishing and aquaculture account for 2.2% of the national gross domestic product (GDP), 3% of foreign earnings, engage some 200,000 and 4.2 million people in permanent and temporary employment respectively. Further there is an absence of other key statistics on the contribution of other water related economic activities, which is instructive of the low uptake of existing investment opportunities.
Tanzania has total inland water surface area covers 62,000 square kilometers comprising of the four main water basins of: Lake Victoria, Nyasa, Tanganyika and Rukwa. Tanzania encompasses a territorial sea size of 64,500 square kilometers. These resources offer investment opportunities in fishing, fish farming, salt harvesting, prospecting for oil and gas, mariculture (including seaweed), coastal tourism, shipping and maritime transportation.
The Government has strengthened exploitation of the blue economy by putting in place institutional systems, policies, laws, procedures and guidelines. Further, despite the Government’s considerable investment in water infrastructure particularly port expansions and acquisition of ships in the great lakes, the contribution of this sector to the national economy remains small. Therefore, this Plan sets out to encourage increased investment in the blue economy.
5.4 Investment and Trade Promotion
This area includes programs that will strengthen domestic markets and take advantage of regional and international market opportunities in promoting trade. In addition, targeted markets are those that will provide opportunities for locally produced goods, including products from agricultural, livestock, fisheries and forests.
5.4.1 Consolidating Business and Investment Environment Reforms
The promotion of investment and trade recognizes the private sector and the overarching business environment as key in building a competitive economy based on the industrialized economy as stipulated in the FYDP III theme. FYDP III will consolidate business environment reforms under the umbrella of the Blue Print framework. FYDP III will address bottlenecks impacting investment and the conduct of business.
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These efforts will enhance competitiveness, the quality of products and services, and reduce bureaucracy in institutions tasked with facilitating business and investment.
Key Interventions for Doing Business and Investment include: (i) Simplify business and investment processes; (ii) Strengthen institutional, fiscal policies, legal and regulatory frameworks; (iii) Pursue national and regional measures related to reduction in the cost of doing business; (iv) Promote awareness and compliance to international technical regulations and standards; and (v) Improve gathering and dissemination of trade and market intelligence.
5.4.2 Trade
A competitive trading system relies on the efficacy of hard infrastructure including rail, roads, ports and energy. Further systems, institutional arrangements policy and regulatory frameworks also play a central role in trade facilitation. To achieve higher levels of trade performance and competitiveness, FYDP III, is directing efforts at increasing the trade sector’s contribution to GDP, streamlining and strengthening trading systems, trade support institutions, infrastructure as well as regional and international trade relations.
Key Interventions for Trade Development include: (i) Identify and negotiate better market access opportunities for domestic produced goods and services; (ii) Establish enterprise development and trade logistics centres; (iii) Simplify and streamline regulatory reforms to address non-tariff barriers; (iv) Reduce logistics costs through improved efficiency and reliability of transport infrastructure, border agencies, logistics regulators and service providers; (v) Improve trade facilitation and effective utilisation of risk management as a tool for restricting the number of costly physical inspections; (vi) Coordinate and facilitate construction of strategic markets at border areas; (vii) Promote trade of domestically value-added goods and services; and (viii) Develop Tanzania National Brand for Tanzanian’s products.
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Table 28: Indicators and Targets for Trade Development
S/N Indicator Target
2019/20 2025/26
1. Exports 1.1. Share of exports in GDP (%) 16.1 28.0 1.2. Share of manufactured goods in total exports (%) 35 40 1.3. Share of services in total exports (%) 45 50 1.4. Share of exports in world market (%) 0.1 0.15 1.5. Share of exports to EAC (%) 7 15 1.5.1. Of which manufactured goods (%) 10.8 14 1.6. Share of exports to SADC (%) 14 30 2. Imports 2.1. Share of imports in GDP (%) 17.9 13 2.2. Share consumer goods in total imports (%) 15 12 2.3. Share of intermediate goods in total imports (%) 32 23 2.4. Share of imports from EAC (%) 7.5 11 2.5. Share of imports from SADC (%) 10 10
5.4.3 Foreign Relations and Economic Diplomacy
The Government implements foreign policy in line with domestic needs and priorities with the view of promoting peace, stability and prosperity. Regional and international cooperation provide opportunities for the resolution of economic and political disagreements, and for attracting investment. Therefore, implementation of this Plan will see Tanzania continue to strengthen its foreign policy through adoption and implementation of approved regional and international development frameworks.
Key Interventions include: (i) Develop and implement a strategic framework for political and economic diplomacy; (ii) Strengthen and expand cooperation and participation in regional and international development; (iii) Construct and rehabilitate Tanzania’s embassies’ buildings abroad.
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Table 29: Indicators and Targets for Foreign Relations and Economic Diplomacy
S/N Indicator Target
2019/20 2025/26
1 Strategic Implementation of Political Diplomacy 1.1 Number of bilateral, regional and international meetings participated 50 250 1.2 Number of Tanzanians involved in peacekeeping missions 2,303 3,500 1.3 Number of new embassies opened abroad 1 10 1.4 Number of new consulates opened abroad 2 6 1.5 Number of Joint Permanent Commissions meetings conducted 5 30 1.6 Number of signed MoUs in areas of cooperation between Tanzania 15 80 and other countries 1.7 Number of neighbourhood meetings conducted 5 40 1.8 Number of regional and international platforms using Kiswahili as 5 6 official language 1.9 Number of Institutions teaching Kiswahili in Regional and International 5 10 Arena 2. Strategic implementation of Economic Diplomacy 2.1 Number of Tanzanians participating in trade fairs and forums 240 1,200 2.2 Number of trade fairs and forums which Tanzania participated 20 100 2.3 Number of foreign investors 86 430 2.4 Number of foreign tourists 1,600,000 8,000,000 2.5 Number of Tanzanians trained abroad through scholarships 7,600 10,000 3 Expanding Tanzania’s international outreach 3.1 Number of offices and residential buildings rehabilitated 3 11 3.2 Number of plots owned by the government abroad located in prime 1 11 commercial areas developed
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5.5 Interventions for Human Development
Human development is the ultimate aim of any development plan in Tanzania. To catalyse the realisation of this long-term endeavour, FYDP III seeks to raise both availability and quality of health, education, skills development, water, nutrition, human settlements development, urban planning, and social security, required by an individual and society at large for sustained welfare improvement.
Key interventions Include (i) Improve social services infrastructure and facilities; (ii) Introduce tailor made programmes to improve skills and knowledge of available and existing manpower; (iii) Develop and facilitate rare cadre training programmes; (iv) Promote vocational and technical training centres; (v) Support private sector to invest in rare skills, both hardware and software; (vi) Promote and support income generating activities for low-income earners; (vii) Promote social welfare programmes (safety nets), including access to health insurance and pension schemes as well as income smoothing mechanisms; and (viii) Promote training programmes related to learning by doing.
Table 30: Human Development Indicators
S/N Indicator Target
2019/20 2025/26
1.1 Human Development Index 0.57 0.60 2.1 Proportion of Population Below Basic Need Poverty Line (national) 26.4 (2018) 22 2.2 Proportion of Population Below Basic Need Poverty Line (rural) 31.3 (2018) 28.4 2.3 Proportion of Population Below Basic Need Poverty Line (urban) 15.8 (2018) 13.2 2.4 Proportion of population below food poverty line (national) 8.0 (2018) 5.8 2.5 Proportion of population below food poverty line (rural) 9.7 8.0 2.6 Proportion of population below food poverty line (urban) 4.4 3.1 2.7 Multi-dimensional Poverty Index (MPI), 55.4 29.2 3.1 Income inequality (national) 0.38* 0.36 3.2 Income inequality (rural) 0.32* 0.30 3.3 Income inequality (urban) 0.38* 0.37 3.4 Unemployment rate (national) 9.7** 8.0
* HBS 2017/18 **ILFS 2014/15
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5.5.1 Quality and Relevant Education
Quality education includes knowledge and skills consistent with the needs of economic activities. Knowledge and relevant skills improve productivity in production and service delivery. On this basis, this Plan focuses on improving systems of education and learning, rationalising education with the needs of labour market, including the promotion of innovation and technology transfer.
Key Interventions Include (i) Increase spending on inclusive education, skills and innovation related R&D initiatives; (ii) Strengthen regional and international scientific and technical cooperation in education, science, technology, technical and vocational training; (iii) Improve infrastructure in training and development institutions for special and rare cadres; (iv) Improve and incorporate inclusive teaching and learning environment (classrooms, desks, text books, latrines/toilets ratios; boarding for girls; etc.) at all levels; (v) Improve teachers’ competency at all levels, particularly in Mathematics and Science subjects; (vi) Facilitate availability of teaching and learning instruments and tools at all levels; (vii) Increase access to student loans at tertiary level for those in Science, Mathematics, special and rare cadre courses; (viii) Improve availability of academic staff, laboratory technicians, workshop technicians and librarians; (ix) Review and Updating curriculum with alignment to labour market; (x) Promote and support use of ICT in teaching and learning at all levels; and (xi) Improve working environment for teaching staff at all levels; and (xii) Improve access and participation of women and PWD in tertiary and higher learning institutions.
Table 31: Indicators and Targets for Education and Capacity Development
S/N Indicator Target
2019/20 2025/26
1 Education 0.57 0.60 1.1 Early Learning 1.1.1 Early Learning 1.1.2 Gross Enrolment Ratio (% of Eligible) 78.5 100 1.1.3 Net Enrolment Ratio (% of Eligible) 35.9 80 1.1.4 Pupil/Qualified Teacher Ratio (PTR) 130:1 50:1
Number of Qualified Teachers 8,000 8,727
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S/N Indicator Target
2019/20 2025/26
1.2 Primary Education 1.2.1 Gross School Enrolment Ratio 110.6 100 1.2.2 Net Enrolment Ratio (% of Eligible) 95.7 100 1.2.4 Percentage of cohort passing the examination (PSLE) 82.24 100 1.2.5 Pupil/Teacher Ratio 56:1 50:1 1.2.6 Pupil/Textbook Ratio 4:1 1:1 1.2.7 Pupil/Classroom Ratio 75:1 60:1 1.2.8 Pupil/Latrine Ratio (Boys) 54:1 25:1 1.2.9 Pupil/Latrine Ratio (Girls) 51:1 20:1 1.2.10 Pupil/desk Ratio 4:1 2:1 1.2.11 % of Schools with clean water 49.3 60.0 1.2.12 % of Schools with electricity 43.5 60.0 1.2.13 Transition rate from standard seven to form one 77.55 95.9 1.2.14. Adult literacy rate 77.6 81.6 1.3 Secondary Education 1.3.1 Gross Enrolment Ratio in lower secondary schools (%) 46 48 1.3.2 Net Enrolment Ratio (% of Eligible) 36 42 1.3.3 Pupil/Teacher Ratio in lower secondary schools 23:1 20:1 1.3.4 Pupil/Classroom Ratio in lower secondary schools 41:1 40:1 1.3.5 Pupil/Latrine Ratio in lower secondary schools 27:1 20:1 1.3.6 % of Schools with clean water 68.5 88.5 1.3.7 % of Schools with electricity 69.8 85 1.3.8 % of students passing form IV examination 80.65 90.0 1.3.9 % of transition rate from form four to form five 19.2 23 1.3.10 Improve examination pass rate in Mathematics 20 25 1.3.11 Improve examination pass rate in Science subjects 56.2 60.2
Number of Qualified Teachers 8,000 8,727
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S/N Indicator Target
2019/20 2025/26
1.4 Higher Secondary Education 1.4.1 Gross Enrolment Ratio (%) 6.9 10 1.4.2 Net Enrolment Ratio (% of Eligible) 3.3 8 1.4.3 Of which male 3.3 4 1.4.4 Of which female 3.2 4 1.4.5 Percentage of students passing form VI examination 99.51 100 1.5 Higher Education 1.5.1 Higher education enrolment rate 8.2 10 1.5.2 % of which male 4.5 6 1.5.3 % of which female 3.7 4 1.5.4 % of science and mathematics graduates among all university 26 30 graduates 1.5.5 No. of students facilitated with higher educ. loans 132,392 180,000 1.5.6 Loan/Grant to science subjects 63.9 70 1.5.7 Number of graduates 60,940 70,081 1.5.7.1 of which male 34,513 39,690 1.5.7.2 of which female 26,427 44,700 1.6 Tertiary Education 1.6.1 Tertiary gross enrolment rate (%) 4.5 6.0 1.6.2 Annual number of students graduating from tertiary/higher education 55,501 120,000 1.6.3 Of whom science and engineering students (%) 36 40 1.6.4 Of whom women/girls (%) 42 43 1.6.5 Tertiary and higher learning students with access to student loans 60 90
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5.5.2 Health
The health sector is key to human development. The sector includes infrastructure, professionals, medical equipment and supplies, reagents, medicines, curative and preventive care, and health insurance. Therefore, this Plan seeks to strengthen health management systems, service availability and delivery. FYDP III also prioritises the resolution of quality challenges in health service.
Key Interventions include: (i) Construct and rehabilitate inclusive health facilities; (ii) Ensure availability of medicine, medical supplies, reagents, vaccine and pharmaceutical equipment; (iii) Promote and increase scope, as well as coverage of health insurance schemes; (iv) Strengthen specialized and super-specialized services in all zonal, specialized and national referral hospitals; (v) Improve traditional health services/alternative medicines; (vi) Promote and support establishment of vaccines, medicines and medical equipment manufacturing industries; (vii) Promote and support private sector investment in health commodity supply chain; (viii) Design and establish proper logistics and storage of medical commodities; (ix) Strengthen public health rapid response teams; and (x) Improve Emergency Medical Services (EMS).
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Table 32: Indicators and Targets for the Health Sector
S/N Indicator Target
2019/20 2025/26
1.1 Infant Mortality Rate per 1,000 births 36 30 1.2 Under five Mortality Rate per 1,000 births 50 40 1.3 Births attended by a skilled health worker (%) 80 85 1.4 Maternal Mortality Rate per 100,000 220 180 1.5 Life Expectancy (Years) 66 68 1.6 National HIV Prevalence rate (%) 4.7 3.1 1.7 Health expenditure, public (% of Govt. expenditure) 10 12.2
5.5.3 Water Supply and Sanitation
Water and sanitation health are some of the key ingredients for human development. This sector involves the availability and distribution of water and the protection of water sources and resource environment. In this regard, this Plan focuses on improving the availability and distribution of water supplies and sanitation services in urban and rural areas, and protection of water sources and resource environment.
Key Interventions Include: (i) Strengthen supply infrastructures for clean and safe water; (ii) Establish and strengthen the Community Based Water Supply Organizations (CBWSOs) for enhancing sustainability of rural water supply and sanitation services; (iii) Promote appropriate technologies for further treatment of effluent and sludge for recycling and re-use purposes; (iv) Construct strategic water reservoirs; (v) Promote and support Management, development and equitable utilization of trans- boundary water resources; (vi) Strengthen conservation and protection programmes of water resources and water sources; (vii) Strengthen water resources research systems, data collection, processing, storage and dissemination of water statistics; and (viii) Establish programmes and mechanisms for management, monitoring and assessment of water and wastewater quality;
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Table 33: Indicators for Water Supply and Sanitation
S/N Indicator Target
2019/20 2025/26
1.1 Percentage of rural population with access to piped or protected water as 70 85 their main source 1.2 Proportional of the households in Rural areas with improved sanitation facilities 36 75 1.3 Percentage of Regional Centre’s population with access to piped or 84 95 protected water as their main source 1.4 Percentage of households connected to convention public sewer systems 13 30 in Regional Centre’s 1.5 Percentage of Non-Revenue Water (NRW) for Regional Centre’s 30 20 1.6 Percentage of district capitals and areas small towns population with access 70 85 to piped or protected water as their main source 1.7 Percentage of Dar es salaam population with access to piped or protected 85 95 water as their main source 1.8 Percentage of household connected to convention public sewer systems 13 30 in Dar es Salaam 1.9 Percentage of Non-Revenue Water (NRW) for Dar es Salaam 35 20 1. 10 Number of water sources demarcated and gazette for protection and conservation 18 200
5.5.4 Urban Planning, Housing and Human Settlement Development
The strategic direction of FYDP III will be to ensure land tenure security to economic agents and promote planned and serviced urban settlements with functioning town planning procedures, including improved solid and liquid waste management, use of sustainable transport and cleaner energy. Interventions in this section will also address critical implications of rapid urban population growth on settlements.
Key Interventions Include: (i) Promote and facilitate planning, surveying and titling of land parcels for investment and human settlement; (ii) Prepare urban, islands and coastal development master plans; (iii) Establish affordable housing schemes; (iv) Upgrade and scale up an Integrated Land Management Information System; (v) Mainstream land management and planning systems in other sectoral development plans; and (vi) Promote the use of ICT in land surveying and titling.
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Table 34: Indicators and Targets for Urbanization, Housing and Sustainable Human Settlements
S/N Indicator Target
2019/20 2025/26
1.1 % of land surveyed 25 37 1.2 Number of regularized properties in unplanned settlements 1,496,357 2,496,357 1.3 Number of residential licences issued to property owners in 1,738 20,000 unplanned settlements 1.4 % of general land covered by informal settlements 70 25 1.5 Area of land (acres) allocated and protected for public uses 858,665 1,452,415 1.6 Number of Functional DLHTs (district land housing tribunals) 57 139 1.7 Proportions of villages with Land Use Plans 19.3 52.7 1.8 Length of Exclusive Economic Zone (EEZ) in kilometres extended into 0 370 the Indian Ocean (km) 1.9 Number of updated base maps for region 1 26 1.10 Number of allocated plots 1,551,716 4,051,716 1.11 Number of allocated farms 1.12 Number of Towns with up-to-date general planning schemes (Master Plans) 24 54
5.5.5 Food Security and Nutrition
Good nutrition is a key ingredient in the development of a human body, mind and intelligence. Quality nutrition involves the intake of meals containing proportionate amounts of proteins, carbohydrates, fats, vitamins, fibre and water. Further, the availability of food and key nutrients is a cornerstone of good health and human development. In this regard, FYDP III encourages the society to scale up the production of food and nutrients to lessen the prevalence of associated health burdens.
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Key Interventions include: (i) Increase coverage of integrated management of acute malnutrition (IMAM) services; (ii) Promote nutritional programmes, including education, lifestyle, healthy eating, food fortification and sup- plementation; (iii) Promote investment in the production and consumption of diversified nutritious foods. (iv) Increase production, distribution and consumption of local nutritious food; and (v) Capacitate health care providers on provision of comprehensive nutrition services at all levels (including at health facilities);
Table 35: Indicators and Targets for Food Security and Nutrition
S/N Indicator Target
2019/20 2025/26
1.1 Prevalence of stunting in children aged 0 – 59 months 31.8 24 1.2 Prevalence of wasting (weight for height) among children 0-59 3.5 Less than 5 months 1.3 Prevalence of low birth weight (LBW) at birth 6.3 Less than 3 1.4 Proportion of women aged 15-49 years with anaemia 44 22 1.5 Prevalence of global acute malnutrition among children 0-59 months 3.5 Less than 5 1.6 Median urinary iodine of women aged 15-49 years, 100- 299 μg/L; 100- 299 100- 299 μg/L μg/L 1.7 Prevalence of overweight among children 0 – 59 months. 2.8 Less than 5 1.8 Overweight among adults aged 15-49 years 30 Less than 29 1.9 Proportion of households accessing adequately iodized salt 62 80 1.10 Rate of Exclusive Breast Feeding (EBF) 59 65 1.11 Prevalence of vitamin A deficiency among children aged 6 – 59 - Less than months (serum retinol level < 20 µg/dl) 20
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5.5.6 Social Protection
The concept of social protection involves economic empowerment, civic participation in production activities, and improving the livelihood and welfare of vulnerable populations to reduce income poverty and dependency. Further, efforts promoting economic empowerment aim to build the society’s self-reliance and resilience to shocks.
Key Interventions Include: (i) Strengthen alternative care, including foster parenting and adoption services; (ii) Strengthen early childhood development services and child protection; (iii) Strengthen provision of social welfare services including health services and psychosocial support to vulnerable groups and communities; (iv) Strengthen Elderly Councils; (v) Extend social protection coverage to both formal and informal sectors; (vi) Promote private sector investment in the provision of social welfare services; (vii) Promote inclusiveness and economic empowerment for Persons with Disabilities; (viii) Promote individual and community savings behaviour and attitudes, and investment in productive activities; (ix) Strengthen management and regulation of community empowerment funds; (x) Encouraging private sector investment in the provision of social security services; (xi) Encourage participation and economic empowerment for people with disabilities; (xii) Encourage the practice of saving and investing in productive activities; and (xiii) Strengthen the management of citizens’ investment funds.
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Table 36: Indicators and Targets for Social Protection
S/N Indicator Target
2019/20 2025/26
1.1 % Increase of social protection coverage 20 30 1.2 Coverage of health insurance scheme (%) 50 80 1.3 Coverage of the social security scheme (%) 7.3 13.1 1.4 Youth in vulnerable employment (%) 56.3 38.3 1.5 Proportion of children with disability attending primary school (%) 80 100 1.6 Children aged 5-17 engaging in child labour (%) 24.9 21 1.7 Number of reconciled children maintenance 12,068 50,000 1.8 Number of adolescents trained on Health and well being 0 2,000,000 1.9 Number of Day Care Centres registered 1,543 7,500 1.10 Number of destitute elders with health insurances cards for free medical 166,866 500,000 services
2 Productive inclusion 2.1 Beneficiary households participating in functional saving groups 40 50 (Percentage) 2.2 Beneficiaries receiving information on livelihood enhancement services 628,037 1,119,676 (Number) 2.3 Eligible beneficiary households receiving enhanced livelihood support 75,000 200,000 including appropriate basic and skill training and livelihood grant (Number) 2.4 Livelihood Income Generating Activities (IGAs) with approved business 70 90 plans that are set up within six months of receiving livelihood grant support (Percentage) 2.5 Trained members of beneficiary households reporting improved skills as a 60 70 result of the training provided by the PSSN program (Percentage)
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S/N Indicator Target
2019/20 2025/26
3. Public Works 3.1 Beneficiary households receiving transfer through public works (Number) 255,756 1,250,000 3.2 PWP sub-projects/community assets created through PSSN Program 16,000 27,000 (cumulative) (Number) 3.3 PW subprojects with clear maintenance plan and sustainability measures 60 70 (%)
4 Cash Transfer 4.1 Beneficiary households receiving Cash Tranfer (both conditional + 1,167,243 1,219,347 Unconditional) (Number) 4.2 Proportion of children in beneficiary households aged 0-24 months old 94 95 attending health facilities regularly (Percentage) 4.3 Proportion of children in beneficiary households aged 6-18 years enrolled 94 95 in primary schools with more than 80% of attendance a month (%) 4.4 Proportion of eligible children in beneficiary Households linked to 7 8 secondary school (Percentage) 4.5 Proportion of beneficiary household receiving disability benefit (%) 4 6
5.5.7 Good Governance and Rule of Law
Good governance provides a basis for the direction of national development. The rule of law entails compliance with laws, codes, procedures and guidelines in decision making. Therefore, Good Governance and the Rule of Law are part of the key pillars of FYDP III in the realisation of the National Development Vision 2025.
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Key interventions include: (i) Promote effective and efficient Justice Delivery Systems; (ii) Enhance democracy, political and social tolerance; (iii) Promote peace, security and political stability; (iv) Institute developmental role of the state in economic governance; (v) Promote community participation in development processes with special provisions for youth, women and PWDs; (vi) Improve governance systems and coordination of government business; (vii) Implement sustainable leadership assessment to identify and promote future leaders; (viii) Strengthen human resources meritocracy3 services; (ix) Strengthen performance incentives and accountability; (x) Improve public and private sectors service delivery processes; and (xi) Improve Service Delivery Process through e-government.
5.5.8 Effective and Efficient Justice Service Delivery System
Systems facilitating equitable and timely access to justice to all are important in the promotion of a just and equal society. Access and delivery to justice are possible in the presence of sound institutional systems. These systems consist of professional and ethical civil servants, tools, enabling infrastructure and friendly guidelines in dispensing justice. On this basis, justice systems are one of the key pillars of good governance.
Key Interventions Include: (i) Strengthen inclusive legal systems and infrastructure; (ii) Promote the use of inclusive ICT in access and delivery of justice; (iii) Strengthen inclusive legal information and archive management; (iv) Strengthen guidelines and procedures for the provision of legal aid and assistance; and (v) Strengthen birth and death registration services.
3 Strategically getting the right person in the right job at the initial stages of employment, selection, appointment, promotion, induction and probation.
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Table 37: Performance Indicators and Targets for Effective and efficient Justice Delivery System.
S/N Indicator Target
2019/20 2025/26
1 Justice Service Delivery 1.1 Accessibility to Justice Services 1.1.1 Percentage of citizens residing in regions with functional High Court 69 100 1.1.2 Percentage of cases represented by Legal Aid Providers 0.13 2.0 1.1.3 Number of IJCs constructed and made operational in select locations. 10 28 1.1.4 Number of District court buildings constructed 64 139 1.1.5 Number of Primary court buildings constructed 649 791 1.1.6 Number of AG Offices Constructed in Regions 0 10 1.1.7 Number of NPS Offices Constructed in Regions 1 7 1.1.8 Number of NPS Offices Constructed in District 1 11 1.1.9 Number of SG Offices Constructed in Regions 0 5 1.1.10 Number of Districts with registered Legal Aid Providers. 52 138 1.1.11 Number of institutions integrated with ICT in Justice delivery services. 2 8 1.1.12 % of under -five birth registered and issued birth certificate registration 55 100 1.1.13 Legal framework for insolvency reviewed and made operational 0 1 1.2 Efficiency in Justice delivery 1.2.1 Average number of days from the date of case filing to the date of 390 350 case execution 1.2.2 Percentage of public satisfaction on Judiciary services 78 80 1.2.3 Average time it takes from the date of filing to the date of decision of 480 350 a case, at Commercial Court 1.2.4 Percentage of case backlog to the total pending cases in the court system 5 2 1.2.5 Number of Laws and Rules of Procedure Reviewed 410 1,410 1.2.6 Number of laws and rules translated from English to Swahili 50 250 1.2.7 Average time it takes to respond against complaints on violation of 1 Year 6 Months human right in international and national obligations 1.2.8 Average time it takes to vet investment contract 21 14 1.3 Transparency in justice delivery 1.3.1 Number of natural wealth and resources contract approved by the 0 10 parliament for its executions 1.3.2 Percentage Court decisions for High Court and Court of Appeal 5 25 published online 124 “Realising Competitiveness and Industrialisation for Human Development ” STRATEGIC INTERVENTIONS FOR COMPETITIVENESS, INDUSTRIALISATION AND HUMAN DEVELOPMENT
5.5.9 Peace, Security and Political stability
National development and prosperity depend upon peace, security and political stability. The realisation of a peaceful, secure and stable country depends on robust and effective institutions of national defence and security. Therefore, the implementation success of this Plan depends on the robustness of defence and security institutions.
Key Interventions Include: (i) Enhance public safety, law and order; (ii) Improve identification and registration of citizens and non-citizens and e-immigration services; (iii) Develop an effective coordination, collaboration and information sharing system among law enforcement agencies; and (iv) Institute crime record management and coordination system.
Table 38: Indicators and Targets for Enhanced Public Safety, Law and Order
S/N Indicator Target
2019/20 2025/26
1.1 The rate of (%) improving community defence systems 60 95 1.2 Number of security risks identified and reported by the public (%) 75 98 1.3 Level of participation of defence and security forces in economic 5 10 activities (%) 1.4 Rate (%) reduction in crime rates in the country 5.20 35 1.5 Rate (%) reduction in road accidents 30.50 35 1.6 The rate of increase and efficiency of criminal cases investigations (%) 45.10 50 1.7 Number of trained soldiers 15,234 77,891 1.8 Level of access to working facilities resources 1,776 10,140 1.9 Number of soldiers provided better accommodation 11,824 20,688 2.0 Existing rate (%) of integration with other countries on security matters 52 70 2.1 Decreased level of security threats and cross-border offenses (%) 8.70 35 2.2 Number of offenders trained in production and self-employment 12,000 50,000 2.3 The level of value of productions in the Prisons Services and Training 2,343.57 34,000.00 Colleges increased (TZS Million) 2.4 Number of Rescue events held in various parts of the country 2,768 3,600 2.5 Number of fire calls attended 8,511 9,000 2.6 Increased number of beneficiaries of various immigration services 968,624 17,204,620 2.7 Number of refugees identified and registered 207,644 150,000 2.8 Number of qualified people registered and given IDs 22,194,288 34,080,610 2.9 Number of public and private institutions linked to the NIDA system 40 200 125 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
5.5.10 Development of New Capital City of Tanzania – Dodoma
Key among the reasons for relocating the hub of Government activities to Dodoma was the need to reposition public services closer to the people. FYDP III for developing the new capital entailed the construction and strengthening of infrastructure for transport and travel, education, health, water, and Government offices in response to increased demand from the increase in population.
Key Interventions Include: (i) Construct of Government Town Buildings and Offices; (ii) Strengthen infrastructure for sports, entertainment and arts; (iii) Construct and strengthening of travel and transport infrastructure; (iv) Sustain efforts aimed at environmental conservation and green urban development of Dodoma City; (v) Construct business investment centres; (vi) Strengthen the infrastructure for education, technical and vocational training; and Consolidate improvements to health infrastructure
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5.6 Interventions for Skills Development
Skills development is about developing a set of abilities, knowledge and attitudes of the national labour force for the purpose of improving productivity, performance and competitiveness. Skills development involves the interfacing of theoretical and practical training. In this context, this Plan focuses on strengthening the management systems for institutions responsible for the skills development. In addition, FYDP III calls for the readily availability of learning tools, workshops, qualified instructors, and accelerated investment in skill development.
Key Interventions Include (i) Mainstream and integrate theory and practice in the development of training curricular; (ii) Improve infrastructure in training and development institutions for special and rare cadres; (iii) Increase access to post-basic learning opportunities such as workplace-learning programmes, including formal apprenticeships, internships and upgrading informal apprenticeship; (iv) Mainstream inclusive and user-friendly ICT applicability at all levels of skills training and learning; (v) Promote innovation, and transfers of skills and technology; (vi) Promote employable skills for population groups with special needs; and (vii) Facilitate implementation of the National Skills Development Programme (2021/22-2025/26).
Key Targets by 2025
Proportion of working population with high level skills, 12.1 percent; and middle level skills, 54.0 percent.
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Table 39: Indicators and Targets for Skills Development
S/N Indicator Target
2019/20 2025/26
1.0 Technical Education 1.1 Average annual number of students enrolled in technical institutions 150,000 200,000 1.2 Of whom women/girls (%) 51.7 50 1.3 Of whom are students with disabilities (%) 0.09 0.1 1.4 Technical Education gross enrolment rate (%) 5.8 6.9 1.5 Annual number of students graduating from Technical Education 70,000 150,000 1.6 Of whom science and engineering students (%) 24.2 40 1.7 Of whom women/girls (%) 44.8 50 1.8 Technical Education students with access to student loans (%) 20 35 1.9 Number of teaching staff 10,555 15,000 1.10 Of whom is female teaching staff (%) 26.6 50 1.11 Number of researches for labour market Information reports produced 17 25 1.12 Number of Tracer Study report for TVET graduates 0 4 1.13 Number of incubation centres established 2 30 1.14 TVET operations automated (%) 17 1 1.15 Number of TVET institutions monitored for quality assurance 430 800 1.16 Number of new TVET institutions registered 20 40 1.17 Engineers-Technician-Artisan ratio N/A 1:5:25 1.18 Number of graduates 16,000 25,000 1.18.1 % of which male 65 60 1.18.2 % of which female 35 40
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S/N Indicator Target
2019/20 2025/26
2. Vocational Training 2.1. Average annual number of students enrolled in vocational training centres 320,143 1,000,000 2.2. Of whom women/girls (%) 37 45 2.3. Of whom are students with disabilities (%) 0.03 0.05 2.4. Number of teaching staff 10,112 12,321 2.5. Of whom is female teaching staff (%) 36 47 2.6. Number of Labour Market Information assessment reports produced 9 15 2.7. Number of incubation centres established 5 30 2.8. Number of graduates 118,270 207,518 2.9. of which male 72,861 128,195 2.10. of which female 45,409 79,323 3. Other Training 3.1 People with skills obtained through informal system learning for six 20,886 100,000 priority sectors (annually) 3.2 Apprenticeship training for students at workplaces (annually) 745 5,000 4. Skill Levels 4.1. Working population with high level skills (%) 3.3 12.1 4.2. Working population with middle level skills (%) 33.7 54.0 5. Employability Skills 5.1 Number of people with Internship training 30,000 150,000 5.2 Number of people with Apprenticeship Training 46,200 231,000 5.3 Number of people with Modern Agricultural Farming Technology 40,000 200,000 5.4 Number of people with Recognized Prior Learning Skills Development 20,000 100,000
*Out of school/college labour force
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5.7 Flagship Projects of FYDP III
Flagship projects are those deemed critical on the basis of their large positive multiplier effects to the rest of the economy, particularly for the areas that can catalyse the aspired transition towards a competitive led export economy. It is anticipated that their implementation will yield clear, and in some cases rapid tangible positive results in relation to the set objectives and targets of FYDP III. As such, the choice of these projects is based on their ability to cultivate and sustain a national system of competitiveness that leads to accelerated export orientation and diversification, economic growth, and inclusive human development. The flagship projects that fulfil these basic criteria for selection are presented in Box 9 below.
Box 9: Flagship projects of FYDP III
1. Construction of a New Central Railway Line to Standard Gauge: the project entails the completion of the following segments: Dar es Salaam – Morogoro (300 km); Morogoro – Makotopora (422 km). Other network/lots which the Government will construct to Standard Gauge include: Makutupora – Tabora (294 km); Tabora –Isaka (133 km); Isaka – Mwanza (249 km); (Isaka – Rusumo 371 km); Tabora – Kigoma (411 km); Kaliua – Mpanda – Karema (321 km); and Keza – Ruvubu (36 km). This railway line will link Tanzania with the land locked neighbouring countries and hence facilitate trade
2. Construction of the Southern Railway Line: This project involves construction of a New Standard Gauge Railway Line from Mtwara to Mbamba bay with spurs to Liganga and Mchuchuma. Work will also be linking the railway to the existing TAZARA network
3. Construction of Julius Nyerere Hydropower Project (JNHPP) – 2,115 MW: construction of 2,115 MW hydroelectric dams to produce low cost and adequate power to stimulate the economy and encourage industrialization. The project execution begun in 2018 and will contribute to enhance the Power Master Plan by adding to the National Grid 2,115 MW using 7 turbines. It is expected to boost country’s industrialization agenda and other economic activities.
4. Reviving the National Air Carrier -ATCL: The Government will continue to strengthen ATCL operations by purchasing 8 new Aircraft (6 passengers & 2 cargo), trainings to pilots and engineers as well as opening new routes. These efforts are expected to have a direct impact on tourism industry which currently is among large contributors of government revenue.
5. East African Crude Oil Pipeline (EACOP): EACOP covers 1,443 km of pipeline running from Hoima, Uganda to Tanga, Tanzania out of which 1,115 km are in Tanzania where 216,000 barrels of crude oil are transported per day. The project also includes storage, block valves, heating, pumping and marine export facilities.
6. Mchuchuma and Liganga Projects: The twin schemes intend to produce three million tonnes of coal per annum (t/a) open cast and 2.9 million tonnes per annum (t/a) of iron ore, Vanadium and Titanium as well as 1.0 million tonnes per annum (t/a) of steel respectively. The coal from Mchuchuma project will generate 600MW, of which 300MW will be for Liganga Iron Project and the remaining 300MW will be fed into the national grid. The project is expected to contribute in the country industrialization agenda specifically cement, steel and fertilizer. The projects are expected to be implemented by joint venture modality.
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Box 9: Flagship projects of FYDP III (Continued)
7. Ruhudji Hydropower Project – 358 MW: The Government will implement Ruhudji Hydropower Project (358MW) located in Njombe and its transmission Line (170 km). The project will improve the availability, reliability and affordability of electricity across the land. It is expected to increase power evacuation capacity, extend the national grid to the isolated regions and contributing to socio-economic activities in the country including industries and tourism
8. Rumakali Hydropower Project – 222 MW: Rumakali Hydropower project (222MW) and Transmission Line (150 km) are planned to contribute to the nation power Master Plan by the end of 2025/26. Located in Njombe the project will enhance availability and affordability of electricity needed to support the industrialization drive as well as facilitating regional power trade with neighbouring Countries (Zambia and Malawi).
9. Construction of Liquefied Natural Gas Plant (LNG) – Lindi: The Government will implement this project in partnership with reputable Oil and Gas Companies for the betterment of the country. The project is located onshore Tanzania at Likong’o Village, Lindi where the facility will be placed. LNG project with Plant Capacity (MPTA of 5 per train and Gas Volumes of 833 mmscf per day will use gas discovered in the offshore Blocks 1, 2 and 4. After its completion, the project will contribute to the national economy and allow different players to excel in through provision of supplies, employment, logistics services and development of Lindi and Mtwara at large.
10. Soda Ash Project at Engaruka (Soda Ash Refinery and development of associated chemical and glass sheet industries): The project is located at Engaruka Basin in Monduli District, about 190 km from Arusha Town. The country has an enormous amount deposit of soda ash at Engaruka basin in northern part. Geological exploration involving geophysical and drilling explorations discovered the presence of 4.68 billion m3 of brine, which co-exists with solid salt crust amounting to 9.36 billion m3. Further, apart from soda ash, there are other by product such as calcium sulphate, sodium chloride and potassium chloride. According to studies conducted under the implementation of FYDP II, market for the soda ash is huge both local, regional and international as well as a room to promote industrialization for job creation.
11. Construction of Sugar Processing Plant – Mkulazi: FYDP IIIt is expected to produce 250,000 tonnes of sugar per year (200,000 tonnes at Ngerengere and 50,000 tonnes at Mbigiri) and expected to create over 100,000 jobs around the area
12. Construction of Large Bridges and Flyovers i.e. Kigongo – Busisi, Tanzanite Bridge and KAMATA Flyover: The project aims to strategic bridges such as: Kigongo -Busisi bridge (Mwanza) 3.2 km and its approach road 1.66 km a dual carriage way from Mwanza City to Busisi which is expected to open up the country with neighbouring country in trade including Uganda and Rwanda and will facilitate more traffic volume along the routes for enhancement of socio-economic activities as well as improving safety to bridge users at Lake Victoria; and New Selander bridge (Tanzanite, Dar es Salaam) 1.03 km and its approach road 5.2 km. The project also involves construction of nine (9) flyovers at main roads junctions and intersections at UHASIBU, Chang’ombe, Jangwani, KAMATA, Morocco, Mwenge, Magomeni, Tabata and Gerezani. These initiatives by the Government intent to alleviate traffic congestion and provide safer and faster access for Mandela, Nyerere, Morogoro and New Bagamoyo roads. In turn, this will improve traffic flow to and from other places within and outside the city centre by providing easy accessibility to port area, airport and tourist attraction sites.
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Box 9: Flagship projects of FYDP III (Continued)
13. Procurement of Deep-Sea Fishing Vessels and Construction of Fishing Port: This project aims to facilitate investment in the blue economy particularly fishing and therefore promote the development of the domestic and export markets. Further to enhance the efficiency of the fishing sector, the Government intends to construct a fishing harbour at Mbegani - Bagamoyo.
14. Eyasi Wembere Petroleum Exploration Project: This is a Strategic Project aimed to enable the National Oil Company to Explore Oil and Gas in Eyasi Wembere basin. This project will be implemented in partnership with the private sector.
15. Mnazi Bay North Petroleum Exploration Project: This is a Strategic Project aimed to enable the National Oil Company to Explore Oil and Gas in Mnazi bay North. This project will be implemented in partnership with the private sector.
16. Development of Special Economic Zones and Export Processing Zones: The Government will continue to strengthen the infrastructure in designated Special Economic (SEZ) and Export Processing Zones (EPZ). Further, the Government intends to establish new EPZ and SEZs in Singida (Manyoni), Pwani, Kigoma, Tanga, Manyara, Mara, and Ruvuma. The private sector will be encouraged to invest in these zones.
17. Mass training for development of rare and specialized skills for industrialisation and human development (artisans, technicians and, professionals): This project will be implemented by improving budget allocation for research, innovation, technology transfer, and workplace apprenticeships.
The projects require high capital investments. Beside the possible direct monetary gains, the return of these project can be very high in form of wider sector effects – reduced costs of production, faster access to domestic and hitherto untapped regional markets and enabling the country to fully exploit its geographical location advantage. The projects offer multiple income generation projects and others ‘enabling’ – investment, employment, improved welfare and an expanding tax base.
The shortfall in human resources across sectors has been highlighted as one of the areas of key interest for the FYDP III. While acknowledging policy interventions already on-going from FYDP I and FYDP II in relation to education and technical training, FYDP III strongly advocates a well-set strategy of training of Tanzanians in the rare and specialised skills in the techniques/technologies of exploiting the vast natural resources, particularly mineral resources, oil and gas, among other areas. Now that the flagship projects have been identified, this time around, sectors will consider specially-tailored longer-term (5 years and above, i.e., going beyond 2025) programme(s) (of the type of ‘master plans’ cited in the Background to the introductory chapter of this document). Such programmes will be lean, focused on purposely selected area(s) or field(s). Where a programme of this nature is in progress, the sector(s) shall persist in pursuing it. Not least, item 17 shall be upheld, therefore, as the FYDP III medium-term interventions for human resources development get underway.
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5.8 Other Strategic Projects for the FYDP III
Besides, Flagship Projects, FYDP III also focuses on the implementation of Strategic Projects, these are projects with multiplier effects/impacts to the economy and their implementation results to realization of sectors’ objectives and ambitions. These projects will be developed and implemented by the respective sector ministries. The development and implementation of these projects will correspond to objectives of the National Development Vision 2025, priorities of the National Development Plan 2021/22 – 2025/26, the President’s speech at the inauguration of the 12th Parliament, the ruling party’s election manifesto, and other regional and international development agenda and plans. These projects range from number of sectors with different multitude of investments requirements this include productive sectors, infrastructure provision, social service provision and services industry. They are termed strategic projects given their capabilities of linking overall country’s development objectives within the shortest span while improving the welfare of the Tanzanians. The implementation of strategic projects is therefore aimed at contributing to rally the society behind the implementation and realization of FYDP III targets, and in so doing, contribute to the attainment of Tanzania Development Vision 2025 objectives. The designated strategic project falls under four priority areas of FYDP III to ensure that the desired outcomes are realised. The selection of these projects is based on their potency to propel Tanzania’s supply structure to a higher level of growth, sophistication, competitiveness and human development.
5.9 Expected Outcomes for a Competitive Economy
Implementation of FYDP III is expected to lead to outcomes in the following key areas of: economic growth and human development, improved business environment, improved public revenues, and improved exports. Selected indicators of the anticipated outcomes on progress in making Tanzania a competitive economy with target by 2026 are listed in Table 39 below.
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Table 40: Expected Outputs
A. Competitive Economy
i) Annual economic growth rate averaging above 8 percent in the medium term; ii) GNI per capita increasing from US$ 1,080 attained in 2019/20 to US$ 3,000 in 2025/26 nominal terms iii) Improved environment of doing business thus FDIs projected to surge from US$ 1,173.5 million in 2019/20 to over USD$ 7,980.7 million (equivalent to TZS 19.583 trillion) in 2025/26; iv) Government annual tax revenue collection rising from 13.1 percent of GDP in 2019/20 to 14.4 percent in 2025/26; v) Electrical power generation capacity increased from 1,601.3 MW available in 2019 to 4,915 MW by 2025 and correspondingly connectivity to electrical power improved to 60 percent of population in 2025/26 as compared to 39.9 percent in 2019/20; vi) Manufacturing exports increasing from share of 17.1 percent in 2019/20 to 19 percent in 2025/26 out of total goods’ exports; vii) Improved food self-sufficiency by grain equivalent, sugar, and edible oils from 121 percent in 2019 to 140 by 2025/26 respectively; viii) Self-sufficiency in uniform supplies (cloths and shoes) to the armed forces and primary and secondary school students; and ix) Number of tourists rising from 1,500,000 in 2019/20 to 5,000,000 by 2025/26 x) Tourism proceedings to increase from US$ 2.6 billion in 2019/26 to US$ 4.2 billion in 2025/26.
B. Social Wellbeing
i) Proportion of Population below Basic Needs Poverty reduced from 26.4 percent (National), 31.3 percent (rural) and 15.8 (urban) recorded in 2019/20 to 22 percent (National), 28.4 (rural) and 13.2 (urban) in 2025/26 respectively ii) Improvement in national human development index from 0.57 percent in 2019/20 to 0.60 percent by 2025/26; iii) Number of graduates from higher education increasing from 61,000 in 2019/20 with to 98,000 graduates and iv) Number of graduates from folk, vocational and technical education surging from 86,547 in 2019 to around 222,000 by 2025/26 respectively; v) Under Five Mortality Rate reduced from 50.8 deaths per 1,000 live births recorded in 2019/20 to around 40 deaths per 1000 live births by 2025/26; vi) Maternal mortality ratio reduced from 321 deaths per 100,000 live births in 2019/20 to 220 deaths per 100,000 live births by 2025/26;
134 “Realising Competitiveness and Industrialisation for Human Development ” 6 FINANCING IMPLEMENTATION OF FYDP III 6 CHAPTER SIX FINANCING IMPLEMENTATION OF FYDP III
6.1. Overview
This Chapter presents the financial resource envelope for financing implementation of the FYDP III and outlines various sources that will be used, including interventions and strategies to enhance resources mobilisation. It also provides details of financing options from both the public and private sector. The Chapter also describes the institutional, policy and legal framework for financing FYDP III, and outlines the roles and responsibilities of different stakeholders in financing FYDP III and achieving intended objectives.
6.2. Resource Envelope for FYDP III
One of the key pre-requisites for successful and sustainable implementation of the development plan is availability of reliable, predictable and steady financial resources. Thus, the capacity to sustainably mobilize both public and private resources is critical for effective implementation of FYDP III. Financing from different sources have been strategically selected based on the area of financing, nature and size of projects and programmes, social-economic viability, risks, and multiplier effects. The public sector will focus on areas which the private sector has the least appetite. State-owned enterprises will be encouraged to invest in strategic areas to their line of business and, thus, be able to pay a dividend to the Government. The Government is particularly emphasizing private sector’s participation in the areas with the appetite. The Government will direct more resources to big projects in which returns accrue over a long term particularly those which the private sector has the least appetite.
The resource envelope for the FYDP III is estimated at TZS 114.8 trillion comprising public and private sources. This is an increase of 6.7 percent compared to FYDP II which was estimated at TZS 107.7 trillion. FYDP III will be financed through Government development budget, which sums up to TZS 74.2 trillion for the entire period of five years. This translates to a 25.9 percent increase of the same budget under FYDP II; which was TZS 59 trillion. Of the total public envelope, an estimated TZS 62.0 trillion will be mobilized from local sources while, TZS 12.2 trillion, will be tapped from grants and concessional loans. The public resources include tax
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and non-tax revenue, external grants and loans. Total financing from private sector sources is projected at TZS 40.6 trillion. Private sector will be directly engaged in financing FYDP III through Joint Venture (JV) and Public Private Partnerships (PPP) projects.
The proposed plan also considers positive developments, mainly Tanzania’s graduation from lower-income middle country to a middle-income county. While the Government will continue to access grants and concessional loans from bilateral and multilateral donors, financing from these sources is projected to decrease. Consequently, accessing international capital markets remains a possibility for the future and could be considered in financing FYDP III. The proposed external financing sources have also taken into considered shocks such as the impact of COVID 19 pandemic that affected most of the traditional development partners and therefore, are likely to reduce their external assistance. Table 41 summarizes sources of financing the FYDP III.
Table 41: Resource Envelop for FYDP III (Million TZS)
2021/22 2022/23 2023/24 2024/25 2025/26 Total
Domestic Revenue 26,032,576 28,214,919 30,852,142 33,503,374 36,059,574 154,662,586 Tax Revenue 22,178,721 24,104,998 26,269,832 28,574,140 30,658,286 131,785,977 Non-Tax 2,989,998 3,192,899 3,606,752 3,885,388 4,299,588 17,974,625 LGAs Own Sources 863,858 917,022 975,558 1,043,847 1,101,700 4,901,985 Grants 1,138,076 959,108 865,416 745,557 520,261 4,228,418 Financing 2,933,636 2,880,930 2,345,708 2,136,303 2,051,673 12,348,250 Foreign (Net) 1,154,884 1,097,745 429,783 58,989 -178,308 2,563,093 Concessional 1,817,847 1,706,574 1,663,106 1,627,871 1,596,144 8,411,542 Non concessional 2,352,107 2,421,900 1,840,650 1,745,450 1,646,775 10,006,882 Amortization -3,015,070 -3,030,729 -3,073,973 -3,314,332 -3,421,227 -15,855,330 Domestic (Net) 1,838,796 1,783,185 1,915,925 2,077,315 2,229,981 9,845,201 NDF 1,838,796 1,783,185 1,915,925 2,077,315 2,229,981 9,845,201 Rollover 3,150,337 3,050,728 3,070,117 3,264,332 3,321,227 15,856,741
Total Government Budget 36,329,740 38,136,414 40,207,356 42,963,899 45,373,962 203,011,371
Total Public Resources for FYDP III 13,326,788 14,023,994 14,936,994 15,815,289 16,214,611 74,317,676
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2021/22 2022/23 2023/24 2024/25 2025/26 Total
Local 10,370,865 11,408,312 12,459,472 13,564,196 14,220,541 62,023,386 Foreign 2,955,923 2,615,682 2,477,522 2,251,093 1,994,071 12,294,291 Total Private Resource 4,132,000 4,546,000 9,076,000 12,297,000 10,560,000 40,611,000
Domestic Sources 1,355,000 719000 5,165,000 7,902,000 5,887,000 21,028,000 Foreign Sources 2,777,000 3,827,000 3,911,000 4,395,000 4,673,000 19,583,000
Total Resources for FYDP III 17,387,855 18,569,994 24,012,994 28,112,289 26,774,611 114,828,676
GDPmp 163,879,616 174,534,634 185,936,799 198,952,375 212,879,041 Tax to GDP ratio 13.5% 13.8% 14.1% 14.4% 14.4% Non-tax to GDP 1.8% 1.8% 1.9% 2.0% 2.0% LGAs Own Sources 0.5% 0.5% 0.5% 0.5% 0.5% Domestic Revenue to GDP 15.9% 16.2% 16.6% 16.8% 16.9% NDF to GDP 1.1% 1.0% 1.0% 1.0% 1.0% Public FYDP III as % of Total Budget 36.6% 36.8% 37.1% 36.8% 35.7% 36.6%
6.3. Sources of Development Finance for the FYDP III
Sources of financing FYDP III are broadly divided into public sector (Government and public corporations) and private sector.
6.3.1. Public Sector Sources of Finances
Public sector sources comprise domestic revenue (tax and non-tax resources, as well as non-traditional and innovative), grants and loans from domestic and external sources.
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6.3.1.1. Domestic Revenue
Domestic revenue is expected to provide substantial financing for the Government budget with its contribution growing steadily from 71.8 percent in 2021/22 to nearly 79.3 percent in 2025/26. As a percent of GDP, domestic revenues increase gradually from 15.9 percent in 2021/22 to 16.9 percent in 2025/26 (Table 39). Traditional sources of domestic revenue will remain to be taxes and non-taxes, including LGA own sources.
Financing resources from Tax: Taxes on imports and domestic income and consumption (currently making up at least 65 per cent of revenues) will continue to be the most important and big sources of tax revenues. The proportion of taxes on local goods (mostly in the form of value-added tax – VAT) and non-tax revenues collected by TRA is expected to grow. The growth in the absolute amount of taxes is going to be a result of the increase in the level of the economy’s aggregate income and strengthened administrative measures whereas ratio of taxes revenue to GDP is estimated to increase from 13.5 percent in 2021/22 to 14.4 percent in 2025/26.
Non-tax revenue is another area where the Government is expected to continue raising revenue. During FYDP III implementation, non-tax revenue collection is targeted to increase from TZS 3.1 trillion during 2021/22 to TZS 4.3 trillion in 2025/26. The Government will enhance collection of non-tax revenue from all potential sources (agencies, public assets, etc.). Revenues from LGAs Own Sources are expected to increase from TZS 0.86 trillion in 2021/22 to TZS 1.102 trillion in 2025/26.
Non-traditional and innovative financing sources are emerging sources with potential opportunities to complement traditional sources in financing development projects. These sources include municipal bonds, impact investing, Diaspora bond, blue and green bonds, crowd financing, Fund of Funds (FoF) schemes, diverse equity-based instruments, insurance and risk financing and Islamic bond (Sukuk). The introduction of Sukuk bond is at advanced stage. To exploit other opportunities, the Government will continue to invest in studies focusing on the feasibility of accessing such innovative sources of financing, and the subsequent enabling environment including policy, legal and institutional related issues. Various studies are underway on innovative financing, including the integrated national financing framework (INFF), which will unlock some of the limiting factors in financing development projects. Furthermore, innovative instruments can be used to finance projects that cannot be financed through Government budget or commercial windows which are very expensive. Examples include Liganga and Mchuchuma projects where Commodity Bond can be used as it has worked successfully in some countries. Revenue generated from the project can be used to repay the loans. To enhance effectiveness and efficiency for this kind of projects, a Special Purpose Vehicle (SPV) can be established to manage the project.
6.3.1.2. Domestic Borrowing
Borrowing from domestic sources will be guided by the Medium-Term Debt Management Strategy (MTDS), which indicates that all maturities of Government securities will be used with a preference on long-term bonds. Currently, the treasury bonds maturities include 2-year, 5-year, 7-year, 10-year, 15 year and 20 year. In the same vein, preparation is at an advanced stage to introduce a 25-year treasury bond. It is important to note that net domestic financing remains at an average of 1.0 percent of GDP to avoid crowding out the private sector.
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6.3.1.3. External Public Sources
Grants and Concessional Financing: The main sources of international public finance will include grants and concessional borrowing. It is expected that grants will continue to decline, as was noted during FYDP II implementation. Among the factors affecting the trend of grants include sustained fiscal deficits in donor countries, the impact of COVID-19, persisting doubts about the effectiveness of ODA-supported programmes and projects in some developing countries as well as recent graduation of Tanzania into a Lower Middle-Income Country status.
Recently, COVID-19 has affected most of the traditional development partners and is likely to reduce their external assistance to address their own fiscal and economic challenges. Further, for Tanzania being categorized as a lower middle-income country, the financing environment is expected to change. It is expected that grants will be reduced and contribution to regional blocks such as the East Africa Community, SADC and Africa Union will increase. This implies that Tanzania will need to enhance measures to increase domestic revenue.
For the next five-years, grants to be mobilized are estimated at TZS 4.2 trillion. The grants will decline gradually from TZS 1.138 trillion in 2021/22 to TZS 0.52 trillion in 2025/26. Contribution of grants to national GDP will also decline from 0.7 percent in 2021/22 to 0.2 percent in 2025/26. The Government is expected to raise resources from concessional sources in the form of Budget Support loans, Project Support and Basket funding. Concessional loans (Project and Basket Support loans) will decline from TZS 1.82 trillion in 2021/22 to TZS 1.60 trillion in 2025/26. However, Budget support loans are not expected to contribute much as most development partners’ appetite is deficient. Non-concessional loans are expected to decrease from TZS 2.35 trillion in 2021/22 to TZS 1.65 trillion in 2025/26. It is important to ensure that these sources are utilized at optimal level.
Efforts to promote confidence building and sustaining existing frameworks while exploring new opportunities and enhancing coordination mechanisms will have to be intensified. Tanzania will utilize the lower-mid- dle-income potential, to build capacity on preparation of bankable projects and enhance negotiation skills. These efforts will widen project loans and agree on a win-win scenario, thus enhancing prudent borrowing. Technical assistance and bilateral relations will be important to seek skills and technology transfer to improve the performance on external resource mobilisation.
Climate Change Fund (CCF): Even though this opportunity was not tapped during FYDP II implementation, it is still an important source for financing FYDP III. A total of USD 304 million (equivalent to TZS 705,280 million), is expected to be mobilized from this source. Based on the lessons learnt from the implementation of FYDP II where access to this source was impacted by inadequate capacity to prepare bankable project for mobilisation of climate change fund, efforts to develop such capacity will be enhanced from the beginning of FYDP III implementation. Action plan to ensure that the needed capacity is attained during the first two years of FYDP III’s implementation will be developed and executed. Actions to be undertaken include the capacity to identify and prepare eligible projects, negotiation skills (for syndication loans, semi-concessional loans and export credit agency loans) and continue with accreditation process to enable MoFP to access directly the Green Climate Funds and other climate finance opportunities, beyond the Green Climate Fund (GCF).
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6.3.2. Private Sector Sources of Financing
As with public sector, source of financing private sector component are broadly divided into two, namely domestic and external sources.
6.3.2.1. Domestic Private Sector Sources
The domestic private sector is expected to directly support FYDP III through the Joint Ventures and Public-Private Partnerships projects and indirectly through its overall investment activities. The private sector support to FYDP III through the JV and PPP projects is estimated at TZS 21.03 trillion. The indirect support to FYDP III, that is, the overall private sector investment to the economy during the implementation of FYDP III is estimated at TZS 250.85 trillion in the sectors of agriculture, mining, industry and manufacturing, construction, trade, hotels service, transport and communication, financial intermediation, education, and health services. Resources for the private sector to support FYDP III (and its other investments) are expected to come from credit facilities, stock markets, corporate bonds, resources from insurance companies, national savings, and capital from private equity firms and venture capital reinvesting profits from the current business activities.
The PPP initiatives are not new to Tanzania. Before enacting PPP Policy in 2009, projects worth about USD 1,000 Million were executed in transport, ICT and energy sectors. The regulatory framework for PPP has evolved and includes the PPP Policy 2009, and the PPP Act that was amended in 2014 and 2018 to streamline PPP life cycle processes. The PPP regulations were released in January 2020 due to the amendment of PPP Act in 2018. To raise PPP attractiveness to the private sector, efforts will be made to ensure that there is an acceptance of PPP instruments at all levels and avoid reversal to traditional procurement of committed PPP projects (on reasons other than value for money considerations). Project feasibility and approval processes will be accelerated as well as the PPP capacities at MDAs and LGAs levels, including requiring the contracting authorities to consider PPP projects during budget preparations. The Government will collaborate with the private sector through PPP arrangement by allocating more resources to cater for enabling infrastructure in areas earmarked for EPZs.
The estimates for the private sector capital injections through PPP and JV as well as the overall private sector investment across different sectors are based on the following assumptions: (a) The potential positive effects of the ongoing private sector related reforms (blueprint for the business environment, for instance) and financial sector reforms (financial sector development master plan). These reforms are likely to advance further business and investment enabling environments and ultimately accelerate private sector access to financial resources for investment purposes; (b) Improved regulatory environment for private sector participation through PPP arrangements; (c) The upcoming new investment promotion policy; and (d) Improved investment and business supporting infrastructures (energy, transport and communication).
Globally, a growing number of innovative domestic private finances can finance development projects that use public resources to leverage private capital into development projects. Reference is made to the Social and Development Impact Bonds (SIB/DIB) and crowd funding. SIB/DIB and crowd funding are still relatively new and, so far, the latter is mostly advanced in the developed world. The Government will continue to gather
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lessons from the early experience of other countries on factors for successful SIB/DIB and crowd funding as well as investing in evaluating the country readiness for such innovative finances including potential for- ward-thinking regulations (for example, transparency on potential financial risks of funds seeking projects), and effective technological solutions. The private sector will also be engaged through the Government floating shares of its ventures in the capital market and subsequently listing in Dar es Salaam Stock Exchange (DSE). The earned funds will be used to enlarge the development resource envelope or in financing the development of other ventures.
6.3.2.2. External Private Sector Sources
The main sources of external private finance will be through Foreign Direct Investment, despite its declining trend in recent years. A total of USD 7,980.7 million (equivalent to TZS 19.583 trillion) FDI inflows is expected to be invested in different economic sectors over the next five years. It is estimated that during FYDP III, FDI inflows will grow by an annual average of 13 percent from USD 1,173.5 million in 2021/22 to USD 1,871.1 million in 2025/26. Significant investments are expected to be in oil and gas, mining and quarrying, food and accommodation, manufacturing, and finance and insurance activities to improve the country’s investment climate, specifically, conducive macroeconomic environment. Other sources will include portfolio investment and other international private transfers.
To attain the sustainable level of Domestic Direct Investment (DDI) and Foreign Direct Investment in the country, the Government will continue building conducive environment for doing business and promote investment potentials. The Government acknowledges the private sector’s central role as the engine for growth and will, therefore, accord the necessary support to facilitate private investment. The Government will continue to promote investments by offering a well-balanced and competitive package of fiscal incentives to investors, both international and domestic. During FYDP III implementation, further improvements will be made in the operation of the One Stop Centre along with stronger coordination between TIC and the ministries that take part in investor facilitation. Particular attention will be paid to the simplicity or clarity of the procedures and speed of decision making, without compromising on due diligence and focus on the intended benefits to the country. Tanzania is a signatory of various Bilateral Investment Treaties (BITs) and Bilateral Trade Agreements (BTAs) in order to promote investment protection and trade. In addition, the country is a member of the Multilateral Investment Guarantees Agency (MIGA), for protection of investments against non-commercial risks.
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6.4. Institutional, Policy and Legal Reforms
6.4.1. Domestic Revenue
To enhance fiscal sustainability, the Government will continue to maintain stable macroeconomic conditions to contribute to economic growth, increase revenue collections by expanding the tax base, increase tax net and improve the tax administration system. Specifically, the following measures will be undertaken: (a) Strengthening collection of various taxes such as import duties, excise duties, VAT and other taxes using maximum automation to reduce corruption practices that might prevail due to physical contact; (b) Building capacity to monitor transfer pricing and invoice mispricing within TRA;
(c) Strengthening tariff collections at Dar es Salaam port, all border posts and all dry ports in the country to curb tax evasion and avoidance. This requires strengthening the capacity of tax collection bodies and establishing systems to track cargo and speed up tax collection procedures; (d) Expanding the tax net by bringing in the informal sector and taxing revenue that is not formally channelled. The strategies in this regard include finding ways to link the taxpayer identification system (TIN) and the national identification (ID) system, quantifying the size of the informal economy and enforcing compliance and greater use of third-party information through withholding taxes; (e) Broadening the geographical distribution of the tax base and diversifying sector contributions, including strengthening the taxation of landed property; (f) Developing a framework for taxing mobile money transactions for revenue collection from electronic payments; (g) Intensifying mining inspections including verification of quantities, contents of mineral production and regular auditing of mining company transactions; maximizing the collection of both taxes and royalties from mineral resources; and strengthening the capacity of Tanzania Mining Commission (TMC) and Tanzania Extractive Industries Transparency International (TEITI); (h) Ensuring corruption temperance in all aspects of revenue collection across all MDAs and LGAs; (i) Reviewing tax exemptions and tax relief systems as incentives to investors; (j) Develop domestic revenue electronic assessment system to minimize human subjectivity and enhance efficiency and trust from taxpayers; (k) Strengthening the capital base of TIB Development Bank and Tanzania Agricultural Development Bank (TADB) to enhance their performance; (l) Facilitating State Owned Enterprise to invest in strategic areas to enable them to pay dividend to the Government; and (m) Facilitating the establishment of Special Purpose Vehicles (SPVs) or Special Committees for investments and ventures in which the Government has an interest, instead of the Government to manage it.
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6.4.2. Domestic Private Finance
Progress has been made in advancing the financial system in Tanzania more so in terms of the number of development financial institutions than the development of financial markets (low depth and participation). Specifically, the following measures will be undertaken to facilitate the expansion of domestic private finances: (a) Implementing reforms identified in the FYDP III’s financial strategies and in the Financial Sector Development Master Plan 2020/21 – 2029/30. (b) To foster private equity and venture capital flows, four priority areas will be considered. First, is to reassess the Fair Competition Commission’s (FCC) threshold for application of its Merger and Acquisition (M&A) Guidelines to make it in line with comparable neighbouring countries. Second, is for the national statistical authority to incentivize public and private investment in supplying industry market data to facilitate businesses making informed investment decisions. Third, is to promote financial literacy education designing awareness programmes to family and informal business owners to improve their governance systems, increase transparency, and become more attractive to private equity/venture capital investors from a governance point of view. (c) To attract more listing at the Dar es Salaam Stock Exchange (DSE), the Government will 1) review tax reliefs targeting venture capital-backed start-ups and venture capital exiting via the Dar es Salaam Stock Exchange’s (DSE) Enterprise Growth Market (EGM) 2) provide tax and non-tax incentives for profitable corporate sector to list their shares at DSE 3) DSE to invest in technology that will help more people access, invest, and track their investment. (d) The Government will look into specific financial market regulations which allow for innovative products to different categories of beneficiaries. (e) To diversify insurance products and expand the penetration of the insurance sector, the Government will accelerate the assessment of the Takaful model of insurance regulations. Approval of Takaful regulations is also likely to attract FDI in the country towards offering these services. (f) The Government will also assess potential tax and non-tax incentives to providers of micro insurance covers, crop insurance (agriculture insurance systems in Tanzania), Universal Health Insurance (UHI) covers especially to diseases that requires long term care such as cancer, diabetes etc. so that they are not excluded by insurers. (g) To increase banking services uptake, the Government will assess a model that embraces all forms of banking models that, for instance, accommodating Islamic (interest free) banking products in the banking regulations and be tax-neutrally treated like conventional banking products (h) To increase digital uptake of financial services, the Government will encourage innovative Fintech products; as well as developing digital bank framework and regulation that can attract FDI towards set up of digital bank in the country. (i) Promote the penetration of microfinance (including the SACCOS sub-sector) expand products that are inclusive e.g., Islamic products issue. (j) Facilitate the effectiveness of economic empowerment entities including SIDO, and Small Entrepreneurs Loan Facility’s Microfinance Fund (SELF MF).
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6.4.3. External financing
Even though external sources are declining, institutional capacity for solicitation and negotiation for grants and loans will be enhanced to enable access to grants and loans that interest the country in a win-win situation. The Ministry responsible for foreign affairs will strengthen economic diplomacy functions to facilitate access to grants and concessional loans.
To build trust with international investors, rating will be undertaken to enable the private sector to be trusted for borrowing from international capital market. . Rating the country will likely improve its ranking, lower borrowing interest, increase of FDI inflow and strengthen private sector to access investment opportunities globally. Currently Tanzania is assessed and categorized at 6th category among countries this implies that it has to pay higher interest rate and insurance premium compared to countries ranked lower. The credit rating exercise improves understanding of the associated financial and credit risks hence to conclude on charged interests and insurance for financial institutions related charges.
To further attract and retain FDI, to diversify the production base and enhance productive capacity during FYDP III, the following will be implemented: (i) Developing an FDI promotion strategy that is linked to the ongoing reform agenda as well as setting priorities for investment policy and promotion reform agendas at both economy-wide and sector levels; (ii) Improving the effectiveness of efforts aimed at attracting and facilitating FDI, including establishing enhanced investor entry regimes, streamlining investment procedures and enhancing investment promotion capacity; (iii) Improving the effectiveness of investment incentives including revision of the investment incentives to make them more useful and friendly; (iv) Strengthening investor confidence particularly, by promoting good practices in investment grievance management; (v) Promoting practices that maximize linkages and positive spill over effects of FDI for the local economy; (vi) Improving human capital which can be used by investors as they can perform better to meet the expectation of investors; (vii) Enhancing stability working environment which will enable investors to have trust and confidence; (viii) Developing EPZ/SEZ necessary infrastructures to attract investors; and (ix) Promoting the availability of local raw materials.
6.4.4. Climate Change Fund
Climate change funds present a great opportunity if appropriately utilized. It is therefore essential to build institutional capacity to access the funds. The needed capacity will be in areas related to the preparation of required documents and systems, possession of requirements for selected institutions to qualify as accredited entities and implementing entities, strengthening coordination and monitoring mechanisms especially climate change funds mobilized by non-state actors. As proposed during the FYDP II, the establishment of a National Climate Change Financing Mechanism for coordinated and enhanced resources mobilisation will be necessary.
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6.5. Financing Risks and Mitigation Measures
Risks for this plan are related to economic, political, environmental and social. They are considered as short-, intermediate- and long-term. They are summarized as follows: (i) Insufficient financial resources to implement the proposed interventions. FYDP III proposed different financing sources and inability to mobilize sufficient resources as envisaged may jeopardize implementation of FYDP III. Some of the potential sources proposed in FYDP II did materialize or performed below expectation, some of the reasons for underperformance being beyond the Government control. Mitigation will, therefore, be a financing strategy that has prioritized interventions and focused on areas that have higher economic returns. Further, the Financing Strategy have identified implementation areas and sources of financing including concessional and commercial loans; ; (ii) Loss of revenue through e-commerce: the growth of digital economy has brought significant reforms in the mode of doing business through internet by presenting new business models such as e-commerce and online advertising. These reforms have created significant challenges in taxation arena. To address this, the Government is preparing a strategy to enhance taxation of digital economy including review of current legal framework to address issues of e-commerce, amendment of VAT Act, 2014 to expound the definition of good to include virtual goods and investment in ICT; (iii) Shocks/crisis that affects the economy and/or targeted sources of funds. This includes natural calamities and pandemic which may lead to channelling the resources to areas affected instead of being used in the proposed FYDP III interventions. It may also include the risk that the economy does not grow at the projected rate, thus affecting revenues, such as taxes that depend on income. Global shocks can also happen such as financial crises, natural calamities, and pandemic. Based on the recent experience particularly with regard to instability in some European countries and COVID – 19 pandemic, the support expected (FDIs and ODAs) may be reduced and therefore affect implementation of FYDP III. It is therefore important to undertake diversification and creation of buffer; Improving disaster preparedness and management; strengthening disaster risk financing; use of insurance and risk financing instruments; adjusting plans to match finances; and strengthening dialogue mechanism with DPs; and (iv) Commercial borrowing: the declining trend in the flow of concessional loans and grants implies that the Government will have to rely more on commercial borrowing to finance priority projects. Increased commercial borrowing will pose risks on the national debt sustainability due to higher costs of debt servicing associated with commercial loans. The Government will continue to mobilize funds from less stringent condition sources and enhance measures to increase domestic revenues to finance projects with multiplier effect.
6.6. Stakeholders Role in Supporting the Financing Plan
Collaborative and partnership working relationships among various stakeholders are important in enhancing the smooth implementation of this Plan. Key stakeholders will include Government, Private Sector, Non-State Actors and Development Partners.
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6.6.1. Government
The Government will have the following roles and responsibilities: (i) Foster prioritization, sequencing and accelerating reforms that will address the shallowness of the financial markets. The three aspects are likely to result in more successful reforms than wide-ranging approaches that overstretch the capacity to implement effective reforms; (ii) Enhance synergies between financial sector reforms and other reforms to advance the investment and business climate for fostering private sector development. An example is the reforms in the education sector, or curriculum development need to integrate specific skills and qualification needed by the financial sector. In short, there is a need to systematically linking reforms in the financial sector to the overall private sector development and public sector related reforms; (iii) Offereffective incentives that will expand the use of the capital markets for capital mobilisation that goes into investments, especially that require long-term sources of financing; (iv) Strengthen performance, including manage for development results and ensure accountability and making informed and evidence-based decisions such as by carrying out ex-ante impact assessments; (v) Strengthen coordination of Non-State Actors to play their roles effectively adhering to accountability and transparency principles and national priorities; (vi) Undertake capacity mapping for both public and non-state actors to facilitate appropriate allocation of human resources to become more productive; (vii) Provide conducive environment and coordination for the diaspora to effectively advertise available investment opportunities in the country and actively participate in investing in the country; (viii) Facilitate accreditation to climate change Funds such as Adaptation Funds and Green Climate Fund to widen the eligibility for utilizing the opportunity. Since accreditation is not limited, it will be worth ensuring that as many as possible public and private institutions are applying and undergo the accreditation process; (ix) Through its Embassies, the Ministry responsible for Foreign Affairs will play a great role in linking Tanzania with various foreign investors, facilitating dialogues and agreements towards grants, loans, FDI, and other official flows. Further, the Ministry will have an important role in market and technology intelligence. In other words, the Ministry will play a role of economic diplomacy in linking investors and international traders therefore, it will be required to work closely with the productive sector ministries to improve investment and expand market for products and services; and (x) Strengthen capacity of MDAs, RSs and LGAs in the preparation of bankable projects to enable MDAs, RSs and LGAs access development financing from various financial institutions and investors. (xi) Facilitate the capitalisation of Government investment banks. This will allow the Government to leverage the capital of such banks to increase funding towards productive projects; and as a result more space will be available for the Government to raise funds for the social sectors. (xii) Attract and increase the expertise at MoFP to develop bankable projects and access new forms of innovative financing instruments. (xiii) Advance public finance management that will strengthen revenue forecasting, improve public investment management, commitment controls and improve arrears management.
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6.6.2. Private Sector
The role of the private sector in financing plan is as follows: (i) Leverage the existing private sources of finances to invest in the JV and PPP initiatives; (ii) Continue to use private capital (credit facilities, and stock markets etc.) to invest in numerous productive activities that are purely commercial and do not require public sector resources; (iii) Fostering innovations, skills, resources, ideas and partnerships among private sector stakeholders not only to finance investments, but also to advance the financial sector; (iv) Actively engage in public-private policy dialogues to address inefficiencies in the financial sector as part of the overall Government efforts to strengthen business and investment climate; (v) Promote access to finance to Small and Medium Enterprises (SMEs) through supply-side measures including capacity building measures such as managerial and technical training and support, provision of financial services etc.); and (vi) Provide necessary information and data for proper planning and decision making at all levels.
6.6.3. Development Partners
The Development Partners will have the following responsibilities: (i) Piloting new and innovating financial models pertaining to grants to build shared experience and understanding and how best to use grants; (ii) Support reforms aiming at deepening the financial markets with technical assistances and good practices. Further, they will help use innovation to identify specific techniques for solving potential challenges; and (iii) Promote and facilitate dialogue between the state, the private sector and civil society.
6.6.4. Non-state Actors
Non–state actors will have the following responsibilities: 6.1.1. Non-state Actors Non–state actors will have the following responsibilities: (i) Support the policymaking process through investing in researches, rapid assessments that identify and offer recommendations aiming at addressing binding constraints to financial sector development; (ii) Invest in and participate in policy dialogues associated with financial sector development at various levels; (iii) Invest in development programmes that innovate and offer financial services to the underserved segment of the population; (iv) Share experiences and lessons from other countries on financial sector development as well as on investments in which private and public sectors could collaborate; and (v) Engage in mobilising resources to invest in social and economic sectors that complement public sector investments in the same sectors.
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6.6.5. Financial Service Providers
Financial service providers will be encouraged to develop appropriate innovative products and services for low-income segments of the population including enhancement in the accessibility and usage of development financing. The Government will implement reform measures including those identified in the Financial Sector Development Master Plan 2020/21 to 2029/30 to enhance access to development financing.
6.6.6. Academia and Research Institutions
Academic and research institutions will develop various stakeholders’ capacity including MDAs, RSs and LGAs to prepare bankable projects and solicit funds from various sources. Capacity building will be made through tailor-made programmes, regular short courses as well as long term programme. These institutions will also be responsible for conducting research and studies on resource mobilisation and financial service operations.
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7 IMPLEMENTATION OF FYDP III 7 CHAPTER SEVEN IMPLEMENTATION OF FYDP III
7.1. Overview
FYDP III’s implementation will involve the formulation of policies, guidelines and strategies based on the division of responsibilities. Besides, the Government and other stakeholders will continue to initiate and implement development projects and programs to achieve FYDP III’s objectives. The projects and programs that will be developed and implemented will be in line with sectoral priorities. Similarly, the Five-Year Plan will be executed through the Annual Development Plans.
7.2. Implementation Frameworks of FYDP III
The implementation framework of this Plan will involve Government operational procedures. These include preparing a work plan for the implementation of the sector’s projects and programs, the flow of financial resources requirements and a monitoring and evaluation plan. In addition, various frameworks, including the Annual Plan and Budget guideline will be considered to improve implementation efficiency. In line with the pillars of good governance, FYDP III’s implementation will be based on the Budget Act Chapter 439, the Public Private Partnership Act Chapter 103, the Credit Guarantee and Grants Act Chapter 134 and the Public Procurement Act Chapter 410.
7.3. Implementation Strategies of FYDP III
The preparation of this Plan took place in tandem with the preparation of Strategic Financing, Implementation and Monitoring and Evaluation Strategy. These strategies have highlighted key areas in the implementation of FYDP III as follows: (a) Aligning Ministry’s Plans, Independent Departments and Government Agencies with National Plan: Sector Ministries, Independent Departments, Government Agencies, Regional Secretariats and Local Government Authorities shall align sectoral plans with FYDP III. The aim of aligning sectoral plans with this Plan is to meet FYDP III’s objectives and Vision 2025. (b) Strengthening the Systems of Accessing Data: To facilitate monitoring and evaluation exercise, the Government, in collaboration with the private sector, will strengthen systems and strategies for data collection, processing, storage and dissemination. The data will include indicators for monitoring and evaluation of the implementation of FYDP III.
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(c) Strengthening the implementation of FYDP III: To improve the implementation’s effectiveness, all institutions need to fulfil their roles and responsibilities. The Government will also focus on coordinating partnerships among stakeholders of FYDP III to achieve the expected goals. (d) Designing and Preparation of Development Projects: In the implementation of this Plan, stakeholders are directed to adhere to the National Project Management Information System - NPMIS in the design and preparation of development projects. (e) Monitoring, Evaluation and Reporting: Each stakeholder, in particular the Sector Ministries will develop a monitoring and evaluation strategy in line with FYDP III Monitoring and Evaluation Strategy. The main objective is to simplify monitoring and evaluation activities and reduce the management cost of the implementation of FYDP III. (f) Investment and Trade Facilitation: The Government will strengthen the private sector consultation process to identify areas that will enhance private sector participation in implementing FYDP III. The Government and stakeholders will also continue to conduct assessments and studies on the informal sector’s needs and formalisation to increase the sector’s contribution to the implementation of FYDP III and the economy. (g) Community Involvement in the Implementation of FYDP III: In the implementation of this Plan, the Government encourages citizens to participate, visualize and implement economic activities in line with FYDP III’s priorities. This measure will enable citizens to participate in the implementation of National Plans and motivate them to initiate and own economic activities in their areas to address the challenge of income poverty. In addition, the Government will continue to raise awareness to the public on opportunities arising from FYDP III through the media, journals and conferences.
7.4. Implementation Coordination Structure
The implementation of FYDP III will involve Sector Ministries, Independent Departments, Government Agencies, Regional Secretariats and Local Government Authorities, and the Private Sector as well as non-gov- ernmental organizations. These stakeholders will be responsible for the implementation of FYDP III through sectoral strategic plans. Besides, the Ministry of Finance and Planning will be responsible for coordinating FYDP III’s implementation, monitoring, and evaluation.
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Figure 4: Implementation and Coordination Structure
GOVERNMENT APPROVAL
MoFP udit and Independent odies DPs and udget Impa t valuation P -R PI
s
e tor inistries ards Other Non-State Actors Other Non-State s Private e tor rassroot
FYDP III Key Priority Areas i Competitiveness ii Industriali ation ervi e iii rade and iv o ial Development for In lusive Human Development v ills Development
To operationalize the implementation of the FYDP III, an Implementation Strategy (IS) has been developed concurrently as a guiding tool to support operationalization of the planned interventions. For effective implementation, coordination and monitoring, Ministries, Departments and Agencies (MDAs) will be required to align their respective strategic plans and this IS – FYDP III. In the main, the IS outlines the linkage between FYDP III’s sub-thematic areas, sectoral interventions, resources (financial and time) and responsible institutions.
The IS – FYDP III consists of three (3) components with which their integration results into effective implementation. These components constitute independent documents that highlight actionable areas in resource mobilization that will be used in financing FYDP III and comprehensive development of indicators with their tracking and reporting mechanisms. These components include: I. Action Plan: Summarizes the current status of the sector, describes the challenges and introduces the intervention through, projects/programmes. Further, the Action Plan details on sources of financing, time, activities, expected output and responsible entities; II. Financing Strategy (FS): Since financial resources is a vital input on implementation, then this strategy provides sources of financing of FYDP III as per identified intervention; and III. Monitoring and Evaluation Strategy (MES): highlights on monitoring and evaluating of FYDP III. MES provides the linkage on inputs, implementation and output, delivering through progress and stakeholders reports.
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7.4.1. Government
Coordination of FYDP III’s implementation will be done at the level of Regional Administration and Local Government – President’s Office Regional Administration and Local Government (PO-RALG) and the Ministry of Finance and Planning. PMO-RALG will coordinate the implementation of FYDP III in the Regional Secretariats and Local Government Authorities. PO-RALG will be responsible for monitoring the implementation of development projects and preparing and submitting information to the Ministry of Finance and Planning. Furthermore, at the Central Government level, the Ministry of Finance and Planning will receive and review reports on the implementation of development projects from Sectoral Ministries and prepare a monitoring and evaluation report on implementing FYDP III.
7.4.2. Private Sector and Civil Society
Coordination of FYDP III for the private sector and civil society will be implemented through the various business, investment and social services platforms including Regional Investment Guides, which have been developed by all regions. In addition, the National Business Council - TNBC will be responsible for receiving comments and suggestions from the private sector and submitting them for consultation with the Government. At the sub national level the TNBC will undertake Regional investment forums more regularly. These will involve private sector and Civil societies active in respective regions. The private sector and civil societies should be party to the process of developing Regional and Districts Strategic Plans. Similarly, the Government will receive feedback on implementing FYDP III from civil society organizations and development partners.
7.5. Implementation Risk
Implementation risk includes systematic and idiosyncratic risk as follows: (a) Economic Crisis: Economic and social activities in the country are linked to global development. On that basis, changes in these activities may affect the implementation of FYDP III. Thus, the Government will develop policy strategies to address possible global economic shocks that will affect the implementation of FYDP III. (b) Political Change: FYDP III’s implementation may be affected by internal and external political environment changes. To counteract the effects of these changes, the Government will uphold the principles of good governance. The Government will also strengthen economic and political diplomacy to mitigate the effects of foreign political change. (c) Natural Disasters: Natural disasters that may affect the implementation of FYDP III include: climate change, earthquakes, floods, droughts and outbreaks of diseases. To address the impact of these risks, the Government will strengthen the institutional framework by identifying and mitigating the potential level of risk to improve FYDP III’s implementation.
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8 MONITORING AND EVALUATION 8 CHAPTER EIGHT MONITORING AND EVALUATION
8.1. An Overview of M&E
In pursuit to attain the TDV 2025 with aspiration of becoming a middle-income country with high level of human development, the Government developed the FYDP III with a focus of realizing competitiveness and industrialization for human development. The FYDP III had strategic interventions to deliver on expected outputs, outcomes and impact. To attain such objectives a robust monitoring and evaluation system is of paramount importance. Therefore, this chapter demonstrates a need for having a well-functioning monitoring and evaluation system which is an essential cornerstone of the performance management.
The M&E provides regular feedback on implementation performance to policy and decision makers. Generally, it has been attributed by the Government thirst on ensuring public funds are utilized properly and ultimately attaining value for money, accountability and transparency in development interventions.
In that regard, the FYDP III M&E functions are rooted under FYDP III’s conceptual framework that comprise of two major issues which are (becoming middle income country and attaining high level of human development). The framework outlines economic growth and social development at outcome level and com- petitiveness, industrialization and services, trade, inclusive development and skills development at output level. Such results will be attained given employed sectoral interventions.
This chapter describes the monitoring and evaluation mechanisms to track the progress on implementation and achievements of the FYDP III. It details on the conceptual framework for the FYDP III M&E process. Further, the chapter outlines objectives, strategies, approaches and expected deliverables from the implantation of the M&E activities. The chapter concludes by detailing on functions of evaluation and diagnostic and data analysis respectively.
8.2. Monitoring and Evaluation Conceptual Framework
The conceptual framework for the FYDP III M&E (Figure 6.1) is built on the results chain linked to the expected output, outcomes and impact from the implementation of FYDP III. The framework is aligned with Government operations on managing the resources (inputs).
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Figure 5: Conceptual Framework for FYDP III M&E Framework
Learning
Monitoring
Monitoring Physical Implimentation
Financial Controls F F
Input Activities Output Outcome Impact
Input Indi ators Input Indi ators utput Indi ators ut ome Indi ators Impa t Indi ators Control
Finan ial udit P P I R A E A R
F E E
Evaluation
The conceptual framework demonstrates on the process from which proposed interventions will be monitored by tracking progress and evaluating impact hence to conclude on attaining FYDP III targets. Execution of the M&E activities will involve aligning, tracking objectives to the developed indicators. In that regard, these indicators will focus on thematic areas of FYDP III which include: (i) Competitiveness; (ii) Industrialization and services; (iii) Trade and investment; (iv) Human Development; and (v) Skills development
Other areas to facilitate implementation of FYDP III include; (i) Governance; (ii) Economic Growth; and (iii) Social Development.
Since the FYDP III will be cascaded down to strategic plans at the MDAs, RS, LGAs, private sector and civil society then developed strategic plans will reflect the M&E actions guided by the FYDP III M&E. In that regard the annual performance of the FYDP III will be gauged on monitoring and evaluation of FYDP III through implemented development projects as articulated in ADP.
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8.3. Objective of the M&E Framework
Generally, the M&E framework provides an overview and operational mechanisms for undertaking M&E for the identified FYDP III interventions. It sets organization structures and management processes, standards, Plans and strategies, indicators, the needed information systems, reporting lines, participation and accountability. Further, the framework details on the use of results to inform the on-going future planning and implementation processes. Specifically, the framework aims at: (i) Tracking progress and demonstrating results of FYDP III interventions over the short, medium and long term, including reporting on regional and international targets such as SDGs; (ii) Coordinating and facilitating MDAs, RSs LGAs, private sector and other stakeholders to regularly and systematically track progress of the implementation of priority initiatives of FYDP III; (iii) Assessing performance in accordance with the agreed objectives and performance indicators and targets to inform and support management for results, decision making, compliance, transparency and accountability; and (iv) Institutionalizing and harmonizing of M&E systems, approaches and tools within Government machinery.
8.4. Operationalization for FYDP III M&E
The FYDP III M&E will be operationalized through well-designed strategy approaches, results framework and, a set of deliverables to be developed over time. This process intends to develop a comprehensive, harmonized, well-coordinated as well as well funded monitoring and evaluation system to track the implementation of the envisaged development intervention and ultimately evaluating its outcomes and impacts.
8.4.1. M&E Strategy
The FYDP III M&E Strategy will operationalize on how to track performance of the FYDP III including ascertaining clear points of control, inspections, reviews and evaluation. Tools for quality data collection and management and use of reports for evaluation form part of the Strategy. Further, these Strategies provide guidance on coordination and operationalization of the monitoring, evaluation and reporting systems across the public and private sectors. Such approach reflects on institutionalizing the M&E activities.
8.4.2. Result Framework for FYDP III
The results framework is an explicit expression of the different levels of results expected from particular strategies and in this case, the FYDP III development interventions. This framework describes the relationships between FYDP III objectives, inputs, activities and effects. In that regard, the results framework depicts the tracking progress from inputs to deliverables at management level and FYDP III expectations.
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Figure 6: Result Chain for the FYDP III
Middle Income and High level of Human Development Impact
Economic Growth Social Development Impact
I I Intermediate Trade D D Outcome
M R TVET E V Output E TI M D E TI E D
Interventions Activities
Human, Physical and Financial Resources Inputs
8.4.3. Deliverables of the M&E Framework
The M&E framework is expected to deliver on tracking progress, effective coordination, assessing performance and institutionalizing and harmonizing M&E systems. These results will be shared through quarterly implementation reports; Stakeholders Dialogues Reports focusing on stakeholders’ dialogues held to deliberate on policies and the implementation of the various interventions; supervision and monitoring reports prepared annually by MoFP in collaboration with MDAs and LGAs; and evaluation reports such as participatory, Mid-Term and Final evaluation reports. The operationalization of these deliverables will be undertaken through the FYDP III M&E Strategy.
8.4.4. Approaches to deliver M&E outputs
Mechanism for M&E will involve various approaches including: Control; Inspection; Review, Survey, Use of Data Management Systems, Studies and Research Supervision. (i) Control: This is the process, in which, oversight over the use of the resources, financial control systems, procurement and human resource will be used and maintained. This approach will use the existing Government financial control measures and Internal Audit reports from MDAs, RS and LGAs to evaluate the proper use of financial resources. (ii) Inspections: Regular follow-ups and inspection will be carried out on the implemented interventions. Inspection report will be generated and form part of monitoring and evaluation process. The Ministry of
161 NATIONAL FIVE YEAR DEVELOPMENT PLAN FYDP III - 2021/22 – 2025/26
Finance and Planning will undertake inspection of strategic and flagship projects for expenditure tracking, monitoring implementation and track poverty and SDGs indices under the coordination of the National Planning Division (NPD). LGAs and RS will inspect projects implemented on their jurisdiction and submit reports to MoFP through PO – RALG. (iii) Reviews: Implementation Performance of Plan’s interventions will be reviewed annually. An in-depth review (Midterm Term Review) will be conducted mid-term in the duration of the implementing the Plan. The methods that will be used in annual reviews shall include interviews, Focus Group Discussions (FGD) and Regional/District Consultative meeting reports. Standardized methods and tools will be developed by the MoFP to guide the process. The developed instruments will be further customized by MDAs, RSs, LGAs and Non-State Actors; for utilization at the level of Government systems. (iv) Census and Surveys: Data on performance of the FYDP III at the level of outputs, outcomes and impact will be collected through surveys. The surveys are designed to collect information from a designed population, usually a representative sample for that purpose. The National Bureau of Statistics (NBS) will undertake multi-year surveys that will include the 2022 Population and Housing Census, Household Surveys, Demographic Surveys, Enterprise Surveys and Agricultural Surveys. (A calendar of surveys for multiyear surveys is indicated in annex III). (v) Independent Studies and Research: Independent studies and research are used to produce evidence that contribute to enhance performance of designed plans and interventions. The academia and research institutions will implement the research agenda and produce the outputs to assess projects and services delivery performance in relation to FYDP III. More specifically, academia and research institution will, among others, ensure independence of research work and objectivity, the purpose being not to advocate certain actions or policies but to provide evidence for consideration by policy makers; produce research output that is of good quality and relevant for policy makers and the broad range of stakeholders engaged in FYDP III implementation; and set annual research and analysis of priorities on the basis of the broad-based research agenda. (vi) Use of Data Management System: The MES for FYDP III will continue using existing comprehensive Management Information System (MIS) established at MDAs, RSs, LGAs, and NSAs for collecting routine data and information at different levels of implementation. Similarly, the MoFP will use the National Project Management Information System (NPMIS) to aid timely monitoring and evaluation of projects. (vii) Desk Review: This method can also be termed as secondary data research whereby it does not engage field work in order to get data rather one can review various literatures such as reports and journals prepared by stakeholders so as to gain a broad understanding of the field and acquire information which can be reliable on performance of FYDP III. (viii) Commissioned studies: This method is designed to collect information in collaboration with consultants who go through mix of methods that can either use primary or secondary data and even both in obtaining reliable information on performance.
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8.5. Evaluation of FYDP III
The FYDP III will be evaluated in two broad categories, namely mid-term and end line evaluation. To enhance objectivity and transparency, the mid-term and end line evaluations will be undertaken by an independent evaluator outside of Government machinery with a close supervision from the MoFP to validate data and objectivity of the argumentations. The details of the evaluations are as discussed hereunder: (i) Formative (Mid-term) Evaluation: This is done to monitor progress and adapt implementation of the FYDP III. It will be conducted after two and half years of FYDP III’s implementation. This review will, mainly focus on assessment of performance against the intended objectives and targets. It will recommend any changes required to keep on track the right trajectory of implementation towards achieving the objective s and targets; and (ii) Summative (Final) Evaluation: This is to be conducted after four-and-a-half years of FYDP III’s roadmap of implementation. The evaluation will assess the overall effectiveness of FYDP III against its objectives and targets, and where possible, against outcomes and impacts. It will also constitute parts of the main analytical report to inform ways to coordinate implementation of the subsequent FYDPs.
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ANNEXES NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 166 ANNEXES:
IMPLEMENTATION MATRICES OF FYDP III INTERVENTIONS
A. IMPLEMENTATION MATRIX FOR COMPETITIVE ECONOMY INTERVENTIONS
No. Areas of Targets by 2025 Programmes/ Projects Budget Expected Outputs Interventions Government DPs Private Sector Total
ENERGY
1. Strengthen the Electricity Julius Nyerere Hydropower 5,817,690,000,000.00 5,817,690,000,000.00 Julius Nyerere availability and production increased Project (2,115 MW) Hydropower Project reliability of electrical by 5,760 MW completed by Jan, 2022 power by increasing generation capacity, Kinyerezi I Extension –gas-fired 60,000,000,000.00 60,000,000,000.00 Project completed by transmission, and plant (185MW) July, 2021 distribution networks Rusumo Hydro Power Project 496,187,000,000.00 496,187,000,000.00 Project completed by (80MW), to be equally shared by Feb, 2021 Tanzania, Burundi and Rwanda
Ruhudji Hydro Power Project 965,272,800,000.00 965,272,800,000.00 Project completed by (358MW) June, 2024
Rumakali Hydro Power Project 491,390,000,000.00 491,390,000,000.00 Project completed by (222MW) June, 2024
Kikonge Hydro Power Project 96,000,000,000.00 96,000,000,000.00 Project completed by (300MW) Dec 2023
Kakono Hydro Power Project 1,194,790,000,000.00 1,194,790,000,000.00 Project completed by (87MW) and Malagarasi Hydro Dec 2024 Power Project (45MW)
Mtwara gas-fired plant (300MW) 560,080,000,000.00 560,080,000,000.00 Project completed by Sept 2024 No. Areas of Targets by 2025 Programmes/ Projects Budget Expected Outputs Interventions Government DPs Private Sector Total
Kinyerezi III – 600MW combined 64,000,000,000.00 64,000,000,000.00 Project completed by cycle gas fired plant, two Phases Sept 2024 (phase I – 300MW)
Kinyerezi IV – 350MW combined 64,000,000,000.00 64,000,000,000.00 Project completed by cycle gas-fired plant, Sept 2024
Increased Km 3,309 Singida – Arusha, Namanga 238,830,000,000.00 238,830,000,000.00 Project completed by of Transmission Line 400kV Transmission Line Dec 2021
Iringa – Dodoma, Shinyanga 156,470,000,000.00 156,470,000,000.00 Project completed by 400kV Transmission Line Dec 2022 (Backbone – Phase II)
Geta, Nyakanazi 200kV Transmission 103,000,000,000.00 103,000,000,000.00 Project completed by Line July, 2021
North West Grid 400kV – 931,470,000,000.00 931,470,000,000.00 Project completed by (Iringa, Mbeya, Tunduma, Dec 2022 Sumbawanga) Transmission Line
Central - East Grid 400kV 497,200,000,000.00 497,200,000,000.00 Project completed by (Chalinze – Kinyerezi) Transmission Dec 2022 Line
Central - East Grid 400kV 643,200,000,000.00 643,200,000,000.00 Project completed by (Rufiji – JNHP - Chalinze – Dec 2022 Dodoma) Transmission Line
Ruhudji – Kisada (Iringa) 400kV 193,520,000,000.00 193,520,000,000.00 Project completed by Transmission line Dec 2025
Rumakali – Uyole (Mbeya) 400kV 145,750,000,000.00 145,750,000,000.00 Project completed by Transmission line Dec 2025
Kikonge -Madaba 400kV 70,000,000,000.00 70,000,000,000.00 Project completed by Transmission line Dec 2025
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Programmes/ Projects Budget Expected Outputs DPs Private Sector Total
Mtwara, Somanga Fungu – 1,044,660,000,000.00 1,044,660,000,000.00 Project completed by Kinyerezi 400kV Dec 2026
Five Regional Power Kenya - Tanzania Power 900,000,000.00 900,000,000.00 Project completed by Interconnection and Interconnector Project (KTPIP) year 2021 Power Trading Tanzania - Zambia Power 900,000,000.00 900,000,000.00 Project completed by Interconnector Project (TAZA) year 2023
Tanzania Mozambique Power 53,000,000,000.00 53,000,000,000.00 Project completed by Inter-connector Project (MOTA) year 2024
Tanzania - Uganda Power 63,000,000,000.00 63,000,000,000.00 Project completed by Interconnector Project (TAUPIP) year 2026 – Mwanza –Masaka.
Tanzania – Rwanda and Burundi 1,400,000,000.00 1,400,000,000.00 Project completed by Power Interconnector Project year 2021 (TARBUPIP)
Electrification of Rural Electrification Projects (REA 2,212,000,000,000.00 2,212,000,000,000.00 Project completed by 2,880 villages in 26 Turnkey Phase II and III) and Dec 2025 Region Rural Energy Master Plan
2. Construct and To construct LNG Liquefied Natural Gas (LNG) – 5,200,000,000.00 60,003,200,000,000.00 60,008,400,000,000.00 Project completed by strengthen natural Plant and establish Lindi year 2025 gas supply infrastruc- Petroleum Reserve tures for domestic, and oil storage industrial and infrastructure by 2025 transport use
Rehabilitation of Oil Storage 16,000,000,000 16,000,000,000 Rehabilitation Tank No.8 at Kigamboni completed by year 2025
To construct a 5,457 East Africa Crude Oil Pipeline 5,000,000,000.00 6,975,200,000,000.00 6,980,200,000,000.00 Project completed by km of Natural Gas (EACOP) year 2023 Pipeline by year 2025 Programmes/ Projects Budget Expected Outputs DPs Private Sector Total
New TAZAMA White Petroleum 6,500,000,000.00 2,000,000,000.00 2,372,000,000,000.00 2,380,500,000,000.00 Project completed by Products Pipeline (New TAZAMA) year 2023
Tanzania – Uganda Natural Gas 22,000,000,000.00 63,000,000,000.00 85,000,000,000.00 Project completed by Pipeline (TUNGAP) year 2025
Tanzania – Kenya Natural Gas 25,000,000,000.00 63,000,000,000.00 88,000,000,000.00 Project completed by Pipeline (TAKEGAP) year 2025
Tanzania – Zambia Natural Gas 25,000,000,000.00 63,000,000,000.00 88,000,000,000.00 Project completed by Pipeline (TANZA) year 2025
3. Promote and Electricity Singida Wind Plant, (100MW) 125,000,000 125,000,000.00 125,000,000.00 Project completed by develop renewable production increased Singida Phase 1 – MW 50, Sept 2026 energy technologies by 5,760 MW Makambako Wind Plant (50MW) and projects (Biogas, and Same Wind Plant (50MW) Geothermal, LPG, Solar and Wind Dodoma Solar Power Project 416,775,000,000.00 416,775,000,000.00 Project completed by Energies) particularly 55MW Sept 2026 for rural households Shinyanga Solar Power Project 198,850,000,000.00 198,850,000,000.00 Project completed by 150MW - Sept 2026
Songwe Geothermal plant 174,520,000,000.00 174,520,000,000.00 Project completed by (5MW); Sept 2025 Mbaka – Kejo Geothermal plant (60MW) and Ngozi Geothermal plant (70MW)
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No. Areas of Targets by 2025 Programmes/ Projects Budget Expected Outputs Interventions Government DPs Private Sector Total
4. Strengthen the To construct Dar es Salaam and Coast Region 174,000,000,000.00 174,000,000,000.00 Project completed by availability of oil 5 natural gas Natural Gas Distribution Project; 2025 and natural gas distribution pipelines Mtwara and Lindi Natural Gas by enhancing and associate Distribution Project; Morogoro petroleum facilities in 5 zones and Dodoma Natural Gas exploration and by 2025 Distribution Project; Arusha, development Tanga – Kilimanjaro Natural activities Gas Distribution Project and Morogoro, Iringa – Mbeya
To undertake oil and Eyasi-Wembere Petroleum 641,500,000,000.00 641,500,000,000.00 Project completed by gas exploration in Exploration Project 2025 Eyasi-Wembere Block by year 2025
To increase amount Mnazi-bay Petroleum 740,500,000,000.00 740,500,000,000.00 Project completed by of natural gas Exploration Project Dec 2025 discovered and developed in West Songo Songo Petroleum 742,500,000,000.00 742,500,000,000.00 Project completed by Tanzania by year 2025 Exploration Project Dec 2025
Total 19,890,639,800,000 2,000,000,000 69,772,400,000,000 89,665,039,800,000 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
WORKS
1 Construction and Construction and Construction and 367,000,000,000 330,000,000,000 697,000,000,000 Improved air transport, rehabilitation of rehabilitation of Rehabilitation of National Security and Strategic Airports Airports facilitated by Mwanza International Economic activities such as June, 2026 Airport (building a new Tourism, Trade investment passenger terminal), e.t.c JNIA (Renovation of Second Passenger Building - TBII), Songwe Airport, KIA, Mtwara Airport (phase II), Arusha Airport, Songea Airport (phase II), Bukoba Airport, Musoma Airport, Lake Manyara Airport, Kilwa Masoko Airport, Tanga Airport and Kigoma Airport.
2 Construction and Construction and Construction and 170,000,000,000 381,000,000,000 551,000,000,000 Improved Airports facilities rehabilitation of rehabilitation of Rehabilitation of Regional that provides air transport Regional Airports Airports facilitated by Airports in Iringa, services in the country to June, 2026 Singida, Lindi, Njombe, International Standards Moshi, Tabora, Shinyanga (ICAO). and Sumbawanga.
3 Construction of new Construction of Construction of new 480,000,000,000 600,000,000,000 1,080,000,000,000 Increased capacity to provide Airports Msalato International Geita, Msalato and National and International Airport, Geita Airport Simiyu Airports Air Transport and and Simiyu Airport compliance to International facilitated by June, Standards (ICAO). 2026
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No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
4 Completion Construction and Upgrading of Mtwara, 97,000,000,000 97,000,000,000 Improved Air transport of ongoing rehabilitation of Songea, Dodoma and services for National and Construction and Airports facilitated by Songwe Airports International travelers Rehabilitation of June, 2026 Airports Projects
5 Improve ferry Procuremet of the Procurement of new 8,000,000,000 8,000,000,000 Ferry transportation transport new ferry facilitated. ferry to ply between completed by 2022 Project Rugezi - Kisorya. completed by 2022
6 Procuremet of Procurement of new 81,880,000,000 81,880,000,000 Ferry transportation the new ferries ferry to ply between completed by 2025 facilitated. Ijenga - Kahangala (Mwanza), Musoma - Kinesi (Mara), Nyamisati - Mafia (Pwani), Nyakalilo - Kome (Mwanza), Bwiro - Bukondo (Ukerewe), Ilugwa - Murutanga (Ukerewe), Kakuru - Gana (Ukerewe) (Mwanza), Msangamkuu - Msemo (Mtwara) and Ilungwa - Ukara (Mwanza) and fiber boat at Ilugwa - Ukara No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
7 Improvement of ferry Construction of in- Ferry ramp at 13,750,000,000 13,750,000,000 Ferry ramp completed by ramp frastructures for ferry Magogoni - Kigamboni 2022 stations facilitated (Kigamboni side) by 2025 construction Infra- structures waiting lounge,offices, toilets and hostels for ten ferry stations at Msangamkuu - Msemo (Mtwara), Rugezi - Kisorya (Mwanza), Utete - Mkongo (Pwani), Chato - Nkome (Geita), Ilamba - Majita (Mara), Bugolora - Ukara (Mwanza), Kyanyabasa - Buganguzi (Kagera), Kilambo - Namoto (Mtwara), Kaunda - Maisome (Mwanza) and Rusumo - Nyakiziba (Kagera).
Improvement of ferry ramps at Kikove 1,750,000,000 1,750,000,000 Ferry ramps at Kikove ferry ramps at Kikove (Mlimba - Malinyi), completed by 2022 (Mlimba - Malinyi) Kilombero I and Ferry ramps at Kilombero I and Kilombero I Kilombero II ferries and and Kilombero II completed and Kilombero II transport to Kikove by 2023 ferries and transport (Mlimba Malinyi) to Kikove (Mlimba Malinyi) facilitated
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No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
8. To improve TEMESA Improvement of Procurement of spare 15,000,000,000 15,000,000,000 Procurement of Spare parts by building capacity TEMESA facilitated. parts in bulk and completed by 2025 of staff and providing imorove mechanical equipment and tools works and services including those that identify non-genuine Construction of Construction of 3,000,000,000 3,000,000,000 Workshops and garage for parts. Procurement workshops and workshops and garages mantenance in four districts of tools in bulk. garages in eight (8) for maintenance works completed by 2025 districts and improve at Kahama, Masasi, Dodoma Workshop Nanyumbu, Simanjiro, facilitated. Same, Chato, Kyela and Geita regions and improve Dodoma workshop.
9. To improve Improvement Improvement 3,000,000,000 3,000,000,000 Infrastructure Management Intergrated of Intergrated of Intergrated System completed by 2025 Infrastructure Infrastructure Infrastructure Management System Management System Management System (IIMS) (IIMS) facilitated. (IIMS).
10. Upgrading modern Upgrading modern Upgrading modern 6,500,000,000 6,500,000,000 Worshops completed by workshop (Arusha, workshop (Arusha, workshop (Arusha, 2024 Dar es Salaam (MT Dar es Salaam (MT Dar es Salaam (MT Worshops at Arusha, DSM- Depot) Mtwara, Depot) Mtwara, Depot) Mtwara, Mbeya, MT Depot, Mtwara, Mbeya, Mbeya, Mwanza to Mbeya, Mwanza Mwanza government Mwanza completed by 2025 government vehicles. government vehicles. vehicles.
13. Upgrading modern Upgrading Modern Procurement of six 2,422,400,000 2,422,400,000 Modern mobile workshop mobile workshops mobile workshops mobile workshops completed by 2023 facilitated.
Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
14. To develop designing Designing and Designing and 5,450,000,000 5,450,000,000 Government buildings and strengthen strengthen strengthen in the Government City management management management of 21,800,000,000 21,800,000,000 constructed of government of government government buildings buildings including buildings including second second phase project including second phase project of of government phase project government buildings buildings in the of government in the government City government buildings in the at Mtumba, Dodoma. buildings in the government City government City at facilitated. Mtumba, Dodoma.
16. Constructions of Constructions of Constructions of 10,000 87,850,000,000 87,850,000,000 Houses for Government 10,000 houses for 10,000 houses for houses for Government leaders and public servants Government leaders Government leaders leaders and public constructed and public servant. and public servant servant. facilitated.
17. To strengthen Construction of Construction of 3,100,000,000 3,100,000,000 Furniture workshops implementation of furniture factory furniture factory and completed by 2025 strategies to improve and rehabilitation rehabilitation furniture office furniture and furniture factory workshop of TBA. government houses and rehabilitation and construction furniture workshop of furniture factory facilitated. to reduce the cost of importing from abroad.
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No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
18. To prepare and Construct and Construction and 90,000,000,000 90,000,000,000 Buildings and government implement plans rehabilitate buildings rehabilitation of houses constructed and to construct and and government buildings and rehabilitated. rehabilitate buildings houses with government houses. and government affordable and based houses with on the specific affordable and based needs of people with on the specific disabilities facilitated. needs of people with disabilities.
19. To construct new Construction of Construction of 10,000,000,000 10,000,000,000 Residential houses to residential houses to residential houses to residential houses to accommodate many families accommodate many accommodate many accommodate many constructed families from former families facilitated by families plots belonged to 2025. TAMISEMI
20. To increase working Construction of Construction of 45,000,000,000 45,000,000,000 Residential houses to be capital of TBA for residential houses to residential houses to rented to public servants the purpose of be rented to public accommodate many constructed constructing many servants in different families. residential houses to locations facilitated be rented to public by 2025. servants in different locations.
21. To Construct office Construction Construction of 30,000,000,000 30,000,000,000 Office blocks constructed blocks to be used of office blocks office blocks to be by government for government used by government institutions for the institutions institutions. purpose of reducing facilitated by June rental costs. 2025.
Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
22. Infrastructure Construction of •Construction of 414,180,000,000 225,102,090,000 414,180,000,000 Connectivity of Different Development Sumbawanga - Kibaoni – Sitalike places within the Country Kanyani - Nyakanazi section (71.1 km) and (Region to Region/District, (km 562) to bitumen Vikonge – Uvinza District to Districts) standard section (159 km) to bitumen standard
•Construction of Kasulu 51,474,220,000 225,102,090,000 276,576,310,000 Connectivity of Different – Kabingo section places within the Country (184km) to bitumen and neighbouring country of standard Under AfDB Burundi (Country to country/ Region to Region/District, District to Districts)
Construction of Construction of 112,468,620,000 320,186,190,000 432,654,810,000 Connectivity of Different Tabora - Ipole - Koga Usesula – Ipole – Koga places within the Country - Mpanda (km 359) – Mpanda (km 353.0) (Region to Region/District, to bitumen standard to bitumen standard District to Districts)
Construction of Mto • Construction of Sale 87,126,450,000 87,126,450,000 Connectivity of Different wa Mbu - Loliondo Jct – Loliondo (49 km) places within the Country (km 213) to bitumen to bitumen standard (Region to Region/District, standard District to Districts) Construction of Sale Jct 295,200,000,000 295,200,000,000 - Mto wa Mbu (164 km) to bitumen standard
Construction of Itoni Construction of Lusitu 159,217,440,000 159,217,440,000 Connectivity of Different - Ludewa - Manda – Mawengi (50 km) places within the Country (km 211) to bitumen (Region to Region/District, standard District to Districts)
Construction of Itoni 288,000,000,000 288,000,000,000 District to Districts) – Lusitu (km 50) and Mawengi – Manda (110 km) to bitumen standard
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Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction of Construction of Pangani 66,853,270,000 1,100,000,000 67,953,270,000 Connectivity of Different Makurunge - Saadani – Tanga (50 km) and places within the Country - Pangani - Tanga Pangani – Mkange – (Region to Region/District, (km 178) to Bitumen Makurunge (124.5 km) District to Districts) standard to bitumen standard
Kujenga barabara ya Construction of Turiani 187,200,000,000.00 187,200,000,000 Connectivity of Different Magole – Turiani – – Mziha - Handeni places within the Country Handeni (km 152.8) (104 km) to bitumen (Region to Region/District, to bitumen standard standard District to Districts)
Construction of Construction of 95,400,000,000.00 95,400,000,000 Connectivity of Different Katumba - Mbambo Katumba - Mbambo places within the Country - Tukuyu (km 80) to – Tukuyu (53km) to (Region to Region/District, Bitumen Standard bitumen standard District to Districts)
Construction of Construction of Kilosa - 142,200,000,000 Connectivity of Different Dumila – Kilosa – Mikumi section (79km) 142,200,000,000.00 places within the Country Mikumi (km 141.8) to to bitumen standard (Region to Region/District, bitumen standard District to Districts)
Construction Construction 79,200,000,000.00 79,200,000,000 Connectivity of Different of Kisarawe - of Kisarawe - places within the Country Maneromango (km 54) Maneromango 44km (Region to Region/District, to bitumen standard to bitumen standard District to Districts)
Construction of Construction of 90,000,000,000.00 90,000,000,000 Connectivity of Different Handeni - Kiberashi Handeni – Kiberashi places within the Country - Kondoa - Singida (km 50) to bitumen (Region to Region/District, (km 460) to bitumen standard District to Districts) standard
Construction of Construction of Arusha 774,000,000,000.00 774,000,000,000 Connectivity of Different Arusha - Kibaya - - Kibaya - Kongwa places within the Country Kongwa (km 430) to (430 km) to bitumen (Region to Region/District, bitumen standard standard District to Districts)
Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction of Construction of 741,600,000,000.00 741,600,000,000 Connectivity of Different Makongolosi - Makongolosi - Rungwa places within the Country Rungwa - Mkiwa - Mkiwa (km 412) to (Region to Region/District, (km 412) to bitumen bitumen standard District to Districts) standard
Construction of Construction of 158,400,000,000.00 158,400,000,000 Connectivity of Different Kibaya – Orkesumet - Ngopito – Orkesumet places within the Country Mererani (km 132) to (km 88) to bitumen (Region to Region/District, bitumen standard standard District to Districts)
Construction of Construction of 590,400,000,000.00 590,400,000,000 Connectivity of Different Kolandoto - Lalago - Kolandoto - Lalago places within the Country Mwanhuzi - Matala - - Mwanhuzi - Matala - (Region to Region/District, Oldeani Jct (km 328) Oldeani Jct (km 328) to District to Districts) to bitumen standard bitumen standard
Construction of Construction of 540,000,000,000.00 540,000,000,000 Connectivity of Different Mtwarapachani Mtwarapachani places within the Country – Lingusenguse – – Lingusenguse – (Region to Region/District, Tunduru (km 300) to Tunduru (km 300) to District to Districts) bitumen standard bitumen standard
Construction of Construction of Lupilo 532,800,000,000.00 532,800,000,000 Connectivity of Different Lupilo - Malinyi - - Malinyi - Kilosa kwa places within the Country Kilosa kwa Mpepo Mpepo - Londo - (Region to Region/District, - Londo - Kitanda Kitanda (km 296) to District to Districts) (km 296) to bitumen bitumen standard standard
Construction of a Construction of 288,000,000,000.00 288,000,000,000 Connectivity of Different Mtwara - Newala - Mnivata – Newala places within the Country Masasi (km 210) to – Masasi (km160) to (Region to Region/District, bitumen standard bitumen standard District to Districts)
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Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction of Construction of Makete 173,160,000,000.00 173,160,000,000 Connectivity of Different Njombe -Ndulamo - Kitulo – Isyonje places within the Country - Makete - Kitulo – (96.2 km) to bitumen (Region to Region/District, Isyonje (km 205) to standard District to Districts) bitumen standard
Construction of Construction of 225,000,000,000.00 225,000,000,000 Connectivity of Different Omugakorongo Omugakorongo - places within the Country - Rwambaizi – Rwambaizi – Murongo (Region to Region/District, Kigarama – Murongo (km 125) to bitumen District to Districts) (km 125) to bitumen standard standard
Construction of Construction of 225,000,000,000.00 225,000,000,000 Connectivity of Different Njombe (Kibena) - Njombe (Kibena) - places within the Country Lupembe - Madeke Lupembe - Madeke (Region to Region/District, (Mfuji) Morogoro/ (Mfuji) Morogoro/ District to Districts) Njombe Boarder Njombe Boarder (km 125) to bitumen (km 125) to bitumen standard standard
Construction of Iringa Construction of Iringa 187,200,000,000.00 187,200,000,000 Connectivity of Different - Ruaha National Park - Ruaha National Park places within the Country (km 104) to bitumen (km 104) to bitumen (Region to Region/District, standard standard District to Districts)
Construction of Construction of 140,400,000,000.00 140,400,000,000 Connectivity of Different Morogoro (Bigwa) Morogoro (Bigwa) places within the Country - Mvuha (km 78) to - Mvuha (km 78) to (Region to Region/District, bitumen standard bitumen standard District to Districts)
Construction of Magu Construction of Magu 115,200,000,000.00 115,200,000,000 Connectivity of Different - Bukwimba - Ngudu - Bukwimba - Ngudu places within the Country - Jojiro (km 64) to - Jojiro (km 64) to (Region to Region/District, bitumen standard bitumen standard District to Districts)
Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction Construction 97,200,000,000.00 97,200,000,000 Connectivity of Different of Kahama – of Kahama – places within the Country Nyamilangano – Nyamilangano – Uyogo (Region to Region/District, Uyogo (km 54) to (km 54) to bitumen District to Districts) bitumen standard standard
Construction of Construction of 93,600,000,000.00 93,600,000,000 Connectivity of Different Kisarawe - Mlandizi Kisarawe - Mlandizi places within the Country (km 52) to bitumen (km 52) to bitumen (Region to Region/District, standard standard District to Districts)
Construction of Construction of Matai 90,000,000,000.00 90,000,000,000 Connectivity of Different Matai - Kasesya - Kasesya (km 50) to places within the Country (km 50) to bitumen bitumen standard (Region to Region/District, standard District to Districts)
Construction of Construction of 82,800,000,000.00 82,800,000,000 Connectivity of Different Madaba - Mundindi Madaba - Mundindi places within the Country (Liganga) - Mkiu (Liganga) - Mkiu (Region to Region/District, (km 46) to bitumen (km 46) to bitumen District to Districts) standard standard
Construction of Construction of 39,469,860,000.00 39,469,860,000 Connectivity of Different Makutano – Nata – Sanzate – Natta section places within the Country Mugumu (km 125) to (km 40) and Natta (Region to Region/District, bitumen standard – Mugumu section District to Districts) (km 35) to bitumen standard
Construction of Construction of 63,000,000,000.00 63,000,000,000 Connectivity of Different Kibondo - Mabamba Kibondo - Mabamba places within the Country (km 35) to bitumen (km 35) to bitumen (Region to Region/District, standard standard District to Districts)
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Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction of Construction of Kibaha 41,400,000,000.00 41,400,000,000 Connectivity of Different Kibaha - Mapinga - Mapinga (km 23) to places within the Country (km 23) to bitumen bitumen standard (Region to Region/District, standard District to Districts)
Construction of Rehabilitation of 531,000,000,000.00 531,000,000,000 Connectivity of Different Makambako - Makambako - Songea places within the Country Songea (km 295) to (km 295) to bitumen (Region to Region/District, bitumen standard standard District to Districts)
Construction of Rehabilitation of Same 118,800,000,000.00 118,800,000,000 Connectivity of Different Segera – Same – – Himo (km 66) to places within the Country Himo (km 285) bitumen standard (Region to Region/District, District to Districts)
Construction of Construction of 473,400,000,000.00 473,400,000,000 Connectivity of Different Morogoro - Dodoma Morogoro - Dodoma places within the Country (km 263) to bitumen (km 263) to bitumen (Region to Region/District, standard standard District to Districts)
Construction of Construction of Mtwara 360,000,000,000.00 360,000,000,000 Connectivity of Different Mtwara - Mingoyo - Mingoyo - Masasi places within the Country - Masasi (km 200) to (km 200) to bitumen (Region to Region/District, bitumen standard standard District to Districts)
Construction of Construction of 150,300,000,000.00 150,300,000,000 Connectivity of Different Arusha – Moshi – Tengeru – Moshi – places within the Country Himo – Holili (km Himo – Holili (km 83.5) (Region to Region/District, 140) and Holili – and Holili – Tarakea District to Districts) Tarakea (km 53) to (km 53) to bitumen bitumen standard, standard
Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction of Construction of Igawa 473,616,000,000.00 473,616,000,000 Connectivity of Different Igawa - Uyole - Uyole -Mbeya - places within the Country -Mbeya - Tunduma Tunduma (km 215.12) (Region to Region/District, (km 215.12) including (Mbeya District to Districts) including Mbeya Bypass) km 48 to (Mbeya Bypass) bitumen standard 48km to bitumen standard
Construction of Construction of 165,600,000,000.00 165,600,000,000 Connectivity of Different Lusahunga - Rusumo Lusahunga - Rusumo places within the Country (92 km) to bitumen (km 92) to bitumen (Region to Region/District, standard standard District to Districts)
Construction of Construction of 108,000,000,000.00 108,000,000,000 Connectivity of Different Nyakasanza - Kobero Nyakasanza - Kobero places within the Country (60 km) to bitumen (km 60) to bitumen (Region to Region/District, standard standard District to Districts)
Construction of Construction of 869,400,000,000.00 869,400,000,000 Connectivity of Different Kongwa Ranch - Kongwa Ranch - places within the Country Kiteto - Simanjiro Kiteto - Simanjiro - KIA (Region to Region/District, - KIA (483 km) to (km 483) to bitumen District to Districts) bitumen standard standard
Construction Construction of Sanya 77,400,000,000.00 77,400,000,000 Connectivity of Different of Sanya Juu - Juu - Kamwanga Alerai places within the Country Kamwanga to – Kamwanga (km 43) (Region to Region/District, bitumen standard to bitumen standard District to Districts)
Construction of Construction of 156,600,000,000.00 156,600,000,000.00 Connectivity of Different Kidahwe - Ilunde - Malagarasi – Uvinza places within the Country Malagarasi - Kaliua to (km 51) and Kazilambwa (Region to Region/District, bitumen standard - Chagu (km 36) to District to Districts) bitumen standard
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Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects DPs Private Sector Total
Construction of Construction of 91,800,000,000.00 91,800,000,000 Connectivity of Different Malagarasi - Uvinza Malagarasi – Uvinza places within the Country to bitumen standard (km 51) to bitumen (Region to Region/District, standard District to Districts)
Construction of Construction of 770,400,000,000.00 770,400,000,000 Connectivity of Different Mpanda - Ugala - Mpanda - Ugala - places within the Country Kaliua - Ulyankulu Kaliua - Ulyankulu (Region to Region/District, - Kahama (428km) to - Kahama (km 428) to District to Districts) bitumen standard bitumen standard
Rehabilitation of Construction of 138,600,000,000.00 138,600,000,000 Connectivity of Different Makuyuni – Mto Makuyuni – Mto places within the Country wa Mbu - Karatu wa Mbu - Karatu – (Region to Region/District, – Ngorongoro to Ngorongoro to bitumen District to Districts) bitumen standard standard (km 77)
Construction of Construction of 520,200,000,000.00 520,200,000,000 Connectivity of Different Bariadi-Kisesa-Mwan- Bariadi-Kisesa-Mwan- places within the Country doya - Ngoboko doya - Ngoboko (Region to Region/District, – Construction of – Construction of District to Districts) Mwanhuzi - Sibiti – Mwanhuzi - Sibiti – Mkalama - Iguguno Mkalama - Iguguno (km 289) to bitumen (km 289) to bitumen standard standard
Construction of Construction of Babati 405,000,000,000.00 405,000,000,000 Connectivity of Different Babati - Orkesumet - Orkesumet - Kibaya places within the Country - Kibaya (km 225) to (km 225) to bitumen (Region to Region/District, bitumen standard standard District to Districts)
Construction of Construction of Ntendo 360,000,000,000.00 360,000,000,000 Connectivity of Different Ntendo - Muze - - Muze - Kilyamatundu places within the Country Kilyamatundu (km 200) (km 200) to bitumen (Region to Region/District, to bitumen standard standard District to Districts) No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction of 333,000,000,000.00 333,000,000,000 Connectivity of Different Liwale - Nachingwea Liwale - Nachingwea places within the Country - Ruangwa (185) to - Ruangwa (185) to (Region to Region/District, bitumen standard bitumen standard District to Districts)
Construction Construction of Masasi 81,000,000,000.00 81,000,000,000 Connectivity of Different of Masasi – – Nachingwea (km 45) places within the Country Nachingwea (km 45) to bitumen standard (Region to Region/District, to bitumen standard District to Districts)
Construction Construction of 216,000,000,000.00 216,000,000,000 Connectivity of Different of Ruangwa – Ruangwa – Namichiga places within the Country Namichiga – Nanjilinji – Nanjilinji – (Region to Region/District, – Kiranjeranje (km 120) Kiranjeranje (km 120) to District to Districts) to bitumen standard bitumen standard
Construction of Construction of 153,000,000,000.00 153,000,000,000 Connectivity of Different Ngongo – Mandawa Ngongo – Mandawa – places within the Country – Namichiga (km 85) Namichiga (km 85) to (Region to Region/District, to bitumen standard bitumen standard District to Districts)
Construction of Construction of Kibaoni 293,040,000,000.00 293,040,000,000 Connectivity of Different Kibaoni - Majimoto - Majimoto - Inyonga places within the Country - Inyonga (km 162.8) (km 162.8) to bitumen (Region to Region/District, to bitumen standard standard District to Districts)
Construction of Construction of Kanazi 109,260,000,000.00 109,260,000,000 Connectivity of Different Kanazi –(Kyetema) –(Kyetema) – Ibwera places within the Country – Ibwera – Katoro – – Katoro – Kyaka II to (Region to Region/District, Kyaka II to bitumen bitumen standard (km District to Districts) standard 60.7)
Construction of Construction of 34,200,000,000.00 34,200,000,000 Connectivity of Different Bukoba Mjini – Bukoba Mjini – places within the Country Busimbe – Maruku Busimbe – Maruku – (Region to Region/District, – Kanyangereko – Kanyangereko – Ngogo District to Districts) Ngogo to bitumen to bitumen standard standard (km 19)
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No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction of 225,000,000,000.00 225,000,000,000 Connectivity of Different Njombe (Kibena) – Njombe (Kibena) – places within the Country Lupembe – Madeke Lupembe – Madeke (Region to Region/District, (Mfuji) – Morogoro/ (Mfuji) – Morogoro/ District to Districts) Njombe Border (km Njombe Border (km 125) to bitumen 125) to bitumen standard standard
Construction Construction of 225,000,000,000.00 225,000,000,000 Connectivity of Different of Murushaka – Murushaka – Murongo places within the Country Murongo (km 125) to (km 125) to bitumen (Region to Region/District, bitumen standard standard District to Districts)
Construction of Construction of Mvuha 131,400,000,000.00 131,400,000,000 Connectivity of Different Mvuha – Kisaki (km – Kisaki (km 73) to places within the Country 73) to bitumen bitumen standard (Region to Region/District, standard District to Districts)
Construction of Construction of 223,200,000,000.00 223,200,000,000 Connectivity of Different Likuyufusi – Mkenda Likuyufusi – Mkenda places within the Country (km 124) to bitumen (km 124) to bitumen (Region to Region/District, standard standard District to Districts)
Construction of Construction of 153,000,000,000.00 153,000,000,000 Connectivity of Different Murugarama - Murugarama - Rulenge places within the Country Rulenge - Nyakahura - Nyakahura (km 85) to (Region to Region/District, (km 85) to bitumen bitumen standard District to Districts) standard
Widening og Widening og (Tegeta) 102,600,000,000.00 102,600,000,000 Connectivity of Different (Tegeta) - Bagamoyo - Bagamoyo (57 km) to places within the Country (57 km) to bitumen bitumen standard (Region to Region/District, standard District to Districts) No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction of 99,000,000,000.00 99,000,000,000 Connectivity of Different Kilindoni – Ras Kilindoni – Ras Mkumbi places within the Country Mkumbi – Mafia – Mafia (55km) to (Region to Region/District, (55km) to bitumen bitumen standard District to Districts) standard
Construction of Construction of 98,100,000,000.00 98,100,000,000 Connectivity of Different Igowole - Kasanga Igowole - Kasanga places within the Country - Nyigo (54.5km) to - Nyigo (54.5km) to (Region to Region/District, bitumen standard bitumen standard District to Districts)
Construction of Geita Construction of Geita - 97,200,000,000.00 97,200,000,000 Connectivity of Different - Nzera - Nkome Nzera - Nkome (km 54) places within the Country (km 54) to bitumen to bitumen standard (Region to Region/District, standard District to Districts)
Construction of Construction of 163,260,000,000.00 163,260,000,000 Connectivity of Different Katumbasongwe – Katumbasongwe – places within the Country Kasumulu – Ngana Kasumulu – Ngana (Region to Region/District, – Ileje (90.7 km) to – Ileje (90.7 km) to District to Districts) bitumen standard bitumen standard
Construction of Construction of 116,640,000,000.00 116,640,000,000 Connectivity of Different Namanyere – Namanyere – places within the Country Katongoro – New Katongoro – New (Region to Region/District, Kipili Port (64.8 km) Kipili Port (64.8 km) to District to Districts) to bitumen standard bitumen standard
Construction of Construction of 201,600,000,000.00 201,600,000,000 Connectivity of Different Kagwira – Ikola – Kagwira – Ikola – places within the Country Karema Port (112 Karema Port (112 km) (Region to Region/District, km) to bitumen to bitumen standard District to Districts) standard
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No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction of 244,800,000,000.00 244,800,000,000 Connectivity of Different Mutukula – Bukoba – Mutukula – Bukoba – places within the Country Muhutwe – Kagoma Muhutwe – Kagoma (Region to Region/District, (136 km) to bitumen (136 km) to bitumen District to Districts) standard standard
Construction of Ipole Construction of Ipole 309,600,000,000.00 309,600,000,000 Connectivity of Different – Rungwa (172 km) – Rungwa (172 km) to places within the Country to bitumen standard bitumen standard (Region to Region/District, District to Districts)
Construction of Construction of 855,000,000,000.00 855,000,000,000 Connectivity of Different Mpanda – Ugalla – Mpanda – Ugalla – places within the Country Kaliua – Ulyankulu – Kaliua – Ulyankulu (Region to Region/District, Kahama (475 km) to – Kahama (475 km) to District to Districts) bitumen standard bitumen standard
Construction of Construction of Shelui 198,000,000,000.00 198,000,000,000 Connectivity of Different Shelui – Nzega (km – Nzega (km 110) to places within the Country 110) to bitumen bitumen standard (Region to Region/District, standard District to Districts)
Construction of Construction of Tarime 154,800,000,000.00 154,800,000,000 Connectivity of Different Tarime – Mugumu – Mugumu (km 86) to places within the Country (km 86) to bitumen bitumen standard (Region to Region/District, standard District to Districts)
Construction of Construction of 165,600,000,000.00 165,600,000,000 Connectivity of Different Musoma – Makojo Musoma – Makojo places within the Country –Busekela (km 92) to –Busekela (km 92) to (Region to Region/District, bitumen standard bitumen standard District to Districts)
Construction of Construction of 183,600,000,000.00 183,600,000,000 Connectivity of Different Mwanza – Mwanza/ Mwanza – Mwanza/ places within the Country Shinyanga Boarder Shinyanga Boarder (Region to Region/District, (km 102) to bitumen (km 102) to bitumen District to Districts) standard standard No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction of 180,720,000,000.00 180,720,000,000 Connectivity of Different Nyanguge – Simiyu/ Nyanguge – Simiyu/ places within the Country Mara Boarder (km Mara Boarder (km 100.4) (Region to Region/District, 100.4) to bitumen to bitumen standard District to Districts) standard
Construction of Construction of 293,400,000,000.00 293,400,000,000 Connectivity of Different Kumunazi – Bugene Kumunazi – Bugene places within the Country – Kasulo – Kyaka – – Kasulo – Kyaka – (Region to Region/District, Mutukula (km 163) Mutukula (km 163) to District to Districts) to bitumen standard bitumen standard
Construction of 11 Construction of 592,608,690,000.00 592,608,690,000 Connectivity of Different Bridges Kigongo - Busisi Bridge places within the Country (Mwanza) (Region to Region/District, District to Districts)
Construction of Kirumi 10,976,000,000.00 10,976,000,000 Connectivity of Different Bridge (Mara) places within the Country (Region to Region/District, District to Districts)
Construction of 98,000,000,000.00 98,000,000,000 Connectivity of Different Pangani Bridge (Tanga) places within the Country (Region to Region/District, District to Districts)
Construction 13,200,000,000.00 13,200,000,000 Connectivity of Different of Mkenda Bridge places within the Country (Ruvuma) -108m (Region to Region/District, District to Districts)
Construction of Mtera 68,000,000,000 Connectivity of Different Dam (Iringa)- 320m 68,000,000,000.00 places within the Country including 4.145 km (Region to Region/District, approach roads District to Districts)
“Realising Competitiveness and Industrialisation for Human Development ” 189 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 190
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of 16,900,000,000 Connectivity of Different Mitomoni Bridge 16,900,000,000.00 places within the Country (Ruvuma) - 47.7 m and (Region to Region/District, 8km its approach roads District to Districts)
Construction of Mkundi 13,200,000,000.00 13,200,000,000 Connectivity of Different Bridge (Morogoro) places within the Country m- 60.4 (Region to Region/District, District to Districts)
Construction of 1,800,000,000.00 1,800,000,000 Connectivity of Different Mirumba Bridge places within the Country (Katavi) - 45m (Region to Region/District, District to Districts)
Construction of Ugalla 6,500,000,000.00 6,500,000,000 Connectivity of Different Bridge (Katavi) - 115m places within the Country (Region to Region/District, District to Districts)
Construction of Sanza 23,000,000,000.00 23,000,000,000 Connectivity of Different (Singida) - 75m and places within the Country 14.5 approach roads (Region to Region/District, District to Districts)
Construction of Mzinga 9,273,000,000.00 9,273,000,000 Connectivity of Different (Dar es Salaam) - 48m places within the Country (Region to Region/District, District to Districts)
23 Decongestion of Dar Construction Construction of flyovers 560,628,000,000.00 21,000,000,000.00 581,628,000,000 Increase Mobility and es Salaam City of 8 flyovers( at at Uhasibu. Chang’ombe, Accessibility within the city main junctions/ KAMATA, Morocco, Intersections) Mwenge, Magomeni, Tabata and Gerezani
Construction of BRT Phase II: Kilwa and 218,740,000,000.00 218,740,000,000 Improved public transport, Infrastructure in Dar Kawawa (19.3 km) road Increase Mobility and es Salaam Accessibility within the city No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Phase III: Nyerere, 258,829,000,000 Improved public transport, Uhuru, Bibi Titi 258,829,000,000.00 Increase Mobility and Mohamed and Azikiwe Accessibility within the city roads (23.6 km)
Phase IV: Maktaba, Ali 280,266,000,000 Improved public transport, Hassan Mwinyi, Sam 280,266,000,000.00 Increase Mobility and Nujoma and Mwenge – Accessibility within the city Tegeta roads
Phase V: Mandela Road 251,365,000,000 Improved public transport, – Bandari, Kinyerezi 251,365,000,000.00 Increase Mobility and -Tabata – Kigogo Accessibility within the city – Kawawa (Round About).
Phase VI: Morocco 296,149,000,000 Improved public transport, – Mwai Kibaki – Old 296,149,000,000.00 Increase Mobility and Bagamoyo (9.1) Accessibility within the city
Construction of a Construction of a New 97,740,420,806.81 97,740,420,806.81 Increase Mobility and New Selander Bridge Selander Bridge Accessibility within the cities and towns
24 Decongestion of Construction of Dar Construction of Dar 259,200,000,000 259,200,000,000 Increase Mobility and other Major Cities Es Salaam - Chalinze Es Salaam - Chalinze Accessibility within the cities and towns Express Way Express Way and towns
Construction of Dar Construction of Dar 61,200,000,000 61,200,000,000 Increase Mobility and Es Salaam Outer Ring Es Salaam Outer Ring Accessibility within the cities Roads (Bunju - Mbezi Roads (Bunju - Mbezi and towns (Morogoro Road) - (Morogoro Road) - Pugu) Pugu)
Construction of Construction of Babati 21,600,000,000.00 21,600,000,000 Increase Mobility and Babati Bypass Bypass Accessibility within the cities and towns
“Realising Competitiveness and Industrialisation for Human Development ” 191 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 192
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction of Iringa 13,140,000,000.00 13,140,000,000 Increase Mobility and Iringa Bypass Bypass 7km Accessibility within the cities and towns
Widening of Dodoma Widening of Dodoma – 360,000,000,000.00 360,000,000,000 Increase Mobility and – Dar es Salaam Dar es Salaam (50km); Accessibility within the cities (50km); Dodoma Dodoma – Iringa and towns – Iringa (50km); (50km); Dodoma Dodoma – Singida – Singida (50km); (50km); Dodoma – Dodoma – Babati (50 Babati (50 km) km)
Construction of Construction of 35,826,950,000.00 185,874,470,000.00 221,701,420,000 Increase Mobility and Dodoma City Outer Dodoma City Outer Accessibility within the cities Ring Roads (114 km) Ring Roads (114 km) and towns
Construction of Construction of 173,925,000.00 173,925,000 Increase Mobility and Dodoma City Inner Dodoma City Inner Accessibility within the cities Ring Roads (15 km) Ring Roads (km15) and towns
Widening of Arusha Widening of Arusha 15,840,000,000.00 15,840,000,000 Increase Mobility and Mjini - Kisongo (km Mjini - Kisongo (km 8.8) Accessibility within the cities 8.8) and towns
25. Capacity building for Capacity building Capacity building for 1,000,000,000.00 1,000,000,000 Skills development Professionals in the for Professionals in Professionals in the Works Sector the Works Sector Works Sector facilitated by 2025
Local contractors in Formalization of 520,000,000.00 520,000,000.00 CAF in operational and construction works Contractors Assistance increased Local contractors enhanced by June Fund in construction works 2026 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
26. Capacity building Ehnancement of Ehnancement of 1,500,000,000.00 500,000,000 Skills development for Women in Women Participation Women Participation in Construction works in in Road works Road works enhanced by 2025
SUBTOTAL 23,603,576,567,666.70 2,260,103,170,806.81 25,863,679,738,473.51
TRANSPORT TRANSPORT
1. Airport Development 25 Supply, installation and 57,500,000,000.00 57,500,000,000.00 Safety and security and Maintenance upgrading of ICT, Safety equipments procured and and Security facilities installed and equipment’s 17 Security fences constructed
16 Airports New surveillance system installed
14 Supply, installation and 70,640,000,000.00 70,640,000,000.00 AGL System installation and upgrading of ICT, Safety commissioning and Security facilities and equipments
13 Supply, installation and 20,560,000,000.00 20,560,000,000.00 Airport Management upgrading of ICT, Safety Information System installed and Security facilities and equipments
1 Operationalization of 80,000,000,000.00 80,000,000,000.00 JNIA TB III to continue to JNIA Terminal III provide standard and quality service
1 Upgrading and 228,800,000,000.00 228,800,000,000.00 JNIA terminal I and II maintenance of airport operates infrastructure and facilities
“Realising Competitiveness and Industrialisation for Human Development ” 193 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 194
Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
11 Upgrading and 960,480,000,000.00 960,480,000,000.00 Airports constructed, maintenance of airport rehabilitated and maintained infrastructure and facilities
17 Land valuation and 2,500,000,000.00 2,500,000,000.00 Land acquired acquisition
24 airports Land valuation and 64,920,000,000.00 64,920,000,000.00 Land acquired acquisition
2 Airport projects 1,180,000,000.00 1,180,000,000.00 Studies in place preparation
14 Airport projects 700,000,000.00 700,000,000.00 Master Plan prepared preparation
3 Upgrading and 450,000,000,000.00 450,000,000,000.00 Cargo Terminals in place maintenance of airport infrastructure and facilities
2. Revamping of the Air 1,549,764 Procure new 2,937,000,000,000.00 2,937,000,000,000.00 1,549,764 uplifted passengers; Tanzania Company passengers; Aircrafts and Completion renovation at Limited (ATCL) improve operational KIMAFA and JNIA; infrastructure
15 Domestic 15 domestic destinations Destinations operated operated which are Arusha, Bukoba, Dar es salaam, Dodoma, Geita Iringa Kilimanjaro, Kigoma, Mbeya, Mpanda Mwanza, Mtwara, Songea, Tabora Zanzibar), Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
12 Regional 12 Regional destinations destinations operated operated which are Accra, Bujumbura, Entebbe, Hahaya,Lusaka,
6 International 06 international destinations destinations operated operated which are (Bangkok, Dubai, Guangzhou, Mumbai, Muscat and Tel Aviv
3. Improvement of 7 Weather Radars Acquisition and 15,800,000,000.00 15,800,000,000.00 2 Weather Radars procured Meteorological installation of 2 and installed by 2025 and infrastructure and Weather radars two Radars Upgraded by services June, 2022/23
Marine observation Acquisition and 15,000,000,000.00 15,000,000,000.00 Marine observation systems system installed in installation of installed at Indian Ocean and Indian Ocean and in Meteorological Major Lakes by June 2025 major Lakes Instruments
Lightning detectors Acquisition and 10,000,000,000.00 10,000,000,000.00 Phase I and II of the project in place installation of Lightning of installing lighting detectors detectors across the country completed by June 2025
Modern Acquisition and 10,000,000,000.00 10,000,000,000.00 Other specialized meteorological installation of modern Meteorological instruments instruments in place meteorological procured and installed by instruments June, 2025
“Realising Competitiveness and Industrialisation for Human Development ” 195 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 196
Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
Central Forecasting Construction of Central 625,000,000,000.00 625,000,000,000.00 Central Forecasting Office Office (CFO) with Forecasting Office building with required required facilities in (CFO) facilities in place by June, place 2025
New buildings National 10,000,000,000.00 10,000,000,000.00 New buildings constructed constructed and Meteorological Training and rehabilitation completed rehabilitation Centre by 2025 completed
12 meteorological 12 meteorological 1,000,000,000.00 1,000,000,000.00 12 meteorological stations stations rehabilitated stations rehabilitated rehabilitated by June, 2025
4. Finalise upgrading 2,100 Km of Standard Construction of 9,600,000,000,000.00 9,600,000,000,000.00 Standard gauge railway of the Central line to Gauge Railway line Standard Gauge line from DSM to Mwanza SGR and Purchase Railway on Central line (1,219KM) Completed rolling stocks for SGR; EMU - 10 sets, Procurement of SGR 1,222,171,102,454 1,222,171,102,454 EMU - 10 sets, Electric Electric Locomotive rolling stock Locomotive - 17, Diesel - 17, Diesel electric electric locomotives 5, locomotives 5, Passenger coaches - 59, Passenger coaches Freight Wagons - 1430 SGR - 59, Freight Wagons Rolling stock procured - 1430 SGR Rolling stock procured
5. Continue the 1,000 Km of Standard Construction of 5,500,000,000,000 5,500,000,000,000 SGR line from Mtwara – improvement of Gauge Railway line standard gauge railway Mbamba Bay (1,000 km) railway infrastructure line of Mtwara-Mbam- Completed of TAZARA, Central, babay (Ameliabay) with Eastern and spurs to Liganga and Southern railway Mchuchuma lines and Rehabilitate existing rolling 1,223 Km of Standard Construction of 4,100,000,000,000 4,100,000,000,000 SGR line from Tanga – stocks; Gauge Railway line standard gauge railway Arusha Musoma (1,223 km ) line of Tanga-Arusha - Completed Musoma with branches to Minjingu and Engaruka Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
2,537 Km of MGR Rehabilitation and 1,524,000,000,000 1,524,000,000,000 Existing railway MGR rehabilitated revamping of existing network rehabilitated and MGR line operational
63 MGR mainline Procurement of 185,870,000,000.00 185,870,000,000.00 63 MGR Mainline locomotive procured new MGR mainline locomotives procured locomotives
690 wagons and 37 Rehabilitation of 200,600,000,000.00 200,600,000,000.00 600 wagons and 37 coaches coaches rehabilitated wagons and coaches rehabilitated
6. Expand Sea ports of 21.2 Million DWT, 1 Dredging of the 219,000,000,000 219,000,000,000 Deeper and wider entrance Dar es Salaam, Tanga Million TEUs, 1,600 Entrance channel and channel up to 14.5m and and Mtwara (DSM) ship calls, 2 Million Port Turning Basin 270m respectively compatible Passenger and 22 to Post Panamax ships. Million DWT Port Capacity Strengthening and 170,000,000,000.00 170,000,000,000.00 Strong berths with 14.5 m Deepening of Berth 1-7 depths. and Construction of RoRo Berth at Gerezani Creek.
Strengthening and 20,000,000,000.00 20,000,000,000.00 Strong berths with 14.5 m Deepening of Berth depths. 8-11
Development of Tank 13,200,000,000.00 13,200,000,000.00 5 Tanks developed. Farm
To construct DSM Port’s 14,900,000,000.00 14,900,000,000.00 New Mivinjeni road access roads of Bandari constructed and Bandari and Mivinjeni road
Institution of conveyor 400,000,000.00 400,000,000.00 Multipurpose conveyor system systems in handling dry which can accommodate up to bulk cargo 70,000 tons ships
“Realising Competitiveness and Industrialisation for Human Development ” 197 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 198
Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
Acquisition of Port 16,000,000,000.00 16,000,000,000.00 100% of operational Operations equipment equipment available
Modernization of DSM 2,600,000,000.00 2,600,000,000.00 A modern and Port Central Workshop. well-equipped Central Workshop.
Construction of 260,000,000.00 260,000,000.00 Project completed by 20% Bagamoyo Port
7. Expand Sea ports of 765,367 DWT, 12,000 Modernization of Tanga 256,800,000,000.00 256,800,000,000.00 2 new Berths at Tanga Port and Dar es Salaam, Tanga TEUs, 200 ship calls, Port Phase II deeper quay side up to 14.5 m and Mtwara (Tanga) 100,000 Passengers and 1,000,000 DWT Construction of Oil 10,000,000,000.00 10,000,000,000.00 A new oil jetty and Tank Farm Port Capacity Jetty and Tank Farm at at Raskazone. Raskazone.
8. Expand Sea ports of 600,000 DWT, 7,000 Construction of Four 3,160,000,000.00 3,160,000,000.00 Second new berth Dar es Salaam, Tanga TEUs, 150 ship calls, (4) additional Berth – completed at 10%. and Mtwara (Mtwara) and 1,000,000 DWT Phase II Port Capacity Renovation of Lindi 1,400,000,000.00 1,400,000,000.00 A rehabilitated and Port’s cargo shed. operational shed.
Acquisition of land at 3,000,000,000.00 3,000,000,000.00 Additional land with title Mtwara Port for future deed acquired at Mtwara expansion of the Port Port.
Construction of a road to 1,000,000,000.00 1,000,000,000.00 A paved road leading to the the new Berth at Mtwara. new berth.
9. Expansion and 250,315 DWT, Construction and 3,000,000,000.00 3,000,000,000.00 Lake Ports with required improvement of 1,000,000 Passengers Rehabilitation of Lake capacities. Infrastructure and and 400,000 DWT Victoria Ports of Mwanza Services at Lake Port Capacity North and South, Victoria Ports Bukoba, Kemondo Bay, Musoma na Nansio No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Second phase 210,000,000.00 3,000,000,000.00 Port with required capacity construction of the and facilities to handle cargo Nyamirembe Port at and passengers. Lake Victoria.
Rehabilitation of a road 500,000,000.00 210,000,000.00 Rehabilitated road at leading to Mwanza Mwanza South Port. South Port.
Rehabilitation of 500,000,000.00 500,000,000.00 Functional rail link at Musoma Port Link Span. Musoma Port.
Construction of waves/ 500,000,000.00 500,000,000.00 Water breakers at Bukoba water breaker at Port fully constructed. Bukoba Port
10. Expansion and 300,000 DWT, 4,000 Construction and 7,500,000,000.00 7,500,000,000.00 Ports with required capacity improvement of Passengers and Rehabilitation of and facilities to handle cargo Infrastructure and 400,000 DWT Port Kigoma Port, extension and passengers Services at Lake Capacity of Kasanga Jetty Tanganyika Ports Construction of Karema 9,850,000,000.00 9,850,000,000.00 Ports with required capacity Port at Lake Tanganyika and facilities to handle cargo and passengers at Karema
Construction of 600,000,000.00 600,000,000.00 Port with required capacity Kirando Jetty at Lake and facilities to handle cargo Tanganyika. and passengers
Construction of 500,000,000.00 500,000,000.00 Kipili Jetty with required pavements at Kipili capacity and facilities to Jetty. handle cargo
“Realising Competitiveness and Industrialisation for Human Development ” 199 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 200
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
11. Expansion and 30,000 DWT, 6,000 Construction of Ramps 5,000,000,000.00 5,000,000,000.00 Landing ramps at Kiwira and improvement of Passengers and for Lake Nyasa Ports of Ndumbi Ports. Infrastructure and 300,000 DWT Port Kiwira, and Ndumbi Services at Lake Capacity Nyasa Ports Construction of 10,000,000,000.00 10,000,000,000.00 Jetties with appropriate Landing Jetties and facilities constructed at Lake Facilities for Lake Nyasa Nyasa. Ports.
Construction of 300,000,000.00 300,000,000.00 A new Dispensary a dispensary at completed. Kyela-Lake Nyasa Ports.
Construction of 500,000,000.00 500,000,000.00 A functional passenger Matema passenger lounge at Matema. lounge
12. Construct Dry 5 Dry Ports of Kwala, Construction of 37,000,000,000.00 37,000,000,000.00 5 Dry Ports of Kwala, Isaka, Ports along DSM and Isaka, Ihumwa, potential Dry Ports Ihumwa, Fela and Inyala Central Corridors. Fela and Inyala along DSM and Central constructed by 2025 constructed by 2025.
13. Enhance Training 17 short courses, Expansion and 1,000,000,000.00 1,000,000,000.00 Classes and a conference Institutions in the 4 2,000 strained Improvement of constructed by 2025. Sector students per year college infrastructures
Establishment of 17,470,400,000 17,470,400,000 i. Existing gap in specialized technician training and technical skilled human technology incubation resources for operation centre for maritime and and maintenance of oil/gas industries at NIT national flagship projects – Lindi Campus installations filled iii. Expanded community involvement and adaptation of technologies in specialized areas Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
Establishment of 18, 070,200,000 18, 070,200,000 i. Railway modernization technician training and ii. Railway rolling stock technology incubation fabrication center for Railway industry at NIT – iii. Skilled human resource Dodoma Campus capacity building and Spare parts manufacturing
14. Improvement of Maritime accidents Project to Support 27,260,000,000.00 27,260,000,000.00 Maritime accidents, incidents Maritime Safety for vessels less than Marine Safety, Security and death toll reduced 50 GT maintained & Environment below 9
40 Ships (of 50 Implementation of 2,725,000,000.00 2,725,000,000.00 Increased number of Ship GT) Registered, corrective action plan registered under Tanzanian Unregistered/ for IMO Member State Flag Deregistered Audit Scheme (IMSAS) for License and finding Mortgages
Zero accidents on Procurement of 9,200,000,000.00 9,200,000,000.00 At least five (5) marine ships of 50 GT or Inspection, Search and inspection Boats owned by above maintained Rescue Boats TASAC
5,000 Seafarers’ Maritime safety system 6,300,000,000.00 6,300,000,000.00 Number of qualified Certificates (Automation of Vessel, Tanzanian seafarer increased issued annually in seafarer’s registration accordance with and Certification) STCW-1978 as amended
“Realising Competitiveness and Industrialisation for Human Development ” 201 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 202
Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
Establishment of Library 1,000,000,000.00 1,000,000,000.00 with a Section dedicated on Examination Bank and purchasing relevant books for Marine Officers, deck and engineers including IMO guidelines and CDs on Maritime affairs
Preparation and 4,950,00,000.00 4,950,00,000.00 Internalization of Tanzanian Production of Seafarers seafarers Identity Document (SID)
Maritime accidents Multinational Lake 3,200,000,000 20,000,000,000.00 23,200,000,000.00 death toll reduced Victoria Maritime to 10% Communications & Transport Project
Consultancy to 20,000,000,000.00 20,000,000,000.00 Wider coverage of Mobile develop East African Communication, Search Maritime Transport and Rescue facillities within Strategy inland waterways
Incidents of Pollution Implementation of 3,600,000,000.00 3,600,000,000.00 Zero Pollution to marine resulting from corrective action plan for environment from ships maritime transport IMO Member State Audit activities kept at Zero Scheme (IMSAS) finding
Operationalization of 1,000,000,000.00 1,000,000,000.00 National Marine Oil Spill Response Contingency Plan to stakeholders (NMOSRCP) No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Eight (8) ISPS Ports Procurement of 6,550,000,000.00 6,550,000,000.00 Tanzania ports remained Facilities Compliance specialized/ technical compliant to IMO White list, to IMO White list equipment for Maritime and Zero incidents of Piracy, maintained annually Rescue Coordination armed robbery, human Centre (MRCC) trafficking, Illicit Weapon smuggling, Illicit Weapon Incidents related to 500,000,000.00 500,000,000.00 smuggling, Illicit Drug Maritime Security smuggling within Tanzanian territorial water sustained at zero
15. Enhancing 100% Compliance of Enhancement of 12,270,000,000.00 12,270,000,000.00 Wider scope/ coverage of Regulation of regulated providers maritime transport regulated service providers Maritime Transport of ports and services to Inland monitored as per the services shipping services Waterways (Lakes Performance Standard & to Regulations, Victoria, Nyasa and Benchmarks performance Tanganyika) Standards and benchmarks
Coverage of Facilitate Capacity Number of licensed/ monitored Port building to Port registered port and shipping Terminals increased operators of 70 services increased from twenty-two cluster Ports and (22) to one hundred local government (100) officers around inland waterways
At least 100 ports Consultancy study for services providers & identification of formal 924 Shipping Service and informal ports and providers issued with mapping license/registered
“Realising Competitiveness and Industrialisation for Human Development ” 203 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 204
Targets by 2025 Programmes/ Budget Expected Outputs Projects Government DPs Private Sector Total
Institutional Participate in Regional Increased share/ volume relationship with and International of seaborn cargo in the five (5) Regional Meetings discussing National Income Account and International on Maritime Transport Maritime Transport Agenda and Shipping organs sustained Business
Coverage of Improvement of monitored regulated maritime transport service providers service providers increased to 100% delivery capacity through facilitation of Capacity Building
Four (4) reports on Assessment On the 3,400,000,000.00 3,400,000,000.00 i. Fewer incidents or assessment of extent extent of competition Absence of Monopoly of competition in the in the regulated and anti-competitive regulated services services behaviour prepared and ii. Decreased costs of recommendations provision of services implemented
Ten (10) reports Promotion of economic on compliance efficiency of regulated service providers with regulatory benchmarks disseminated
Four (4) regulated Establishment and 200,000,000.00 200,000,000.00 Standardized Template of services subjected monitoring of Detailed Cost of Services to regional tariff Cost of services for benchmarking selected regulated services No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Detailed cost Carry-out study on 100,000,000.00 100,000,000.00 of services for 5 Costs of Regulated regulated services Maritime Transport established and Services monitored
Average cargo Operationalization of 8,290,000,000.00 8,290,000,000.00 Clearing & Forwarding clearance time Integrated Shipping Agency Services performed maintained to 7 days Business Management to all cargoes under after receiving full set System (SBM) exclusive mandate of documents
95% of responsi- Upgrading SBMS bilities of freight Module of Clearing & forwarding services Forwarding Agency performed
100% of Clearing and Upgrading SBMS forwarding agency Module of Clearing and services automated Forwarding agency services
100% of cargo Upgrading SBMS 4,420,000,000.00 4,420,000,000.00 Ship Tallying Services imported and Module of Ship Tallying performed to all cargo exported through processes imports and exports through Tanzanian ports Tanzanian ports tallied by June, 2026
75% of customers of ship tallying services satisfied by June, 2026
100% of tallying data/ information capturing and reporting automated by June, 2026
“Realising Competitiveness and Industrialisation for Human Development ” 205 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 206
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
16. Improvement of Shipping agency Upgrading SBMS 3,590,000,000.00 3,590,000,000.00 Shipping Agency Services Shipping Agency services covered Module of Ship Agency performed to ship categories services to 7 Categories of processes under exclusive mandate ships under exclusive mandate
1,700 ships (i.e. 340 ships annually) handled TASAC ship agency section
Two (2) modules of Increase of revenue Shipping Business Management Systems (Shipping agency and document control processes) fully automated
17. Enhance Training 1316 persnnel per Construction of 52,000,000,000.00 52,000,000,000.00 (i) Increase of enrolment rate Institutions in the annum infrastructures for from within and abroad Sector International Civil (ii) Increase of revenue Aviation Training (iii) Indirect employments to Centre Tanzanians No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
20 Replace VHF Area 26,000,000,000.00 26,000,000,000.00 Improved VHF Radio Cover Radios Nyashana coverage within Dar es -Mwanza, Kaze hill Salaam airspace and hence Tabora, Kasulu-Kigoma, enhanced safety Songwe, Seronera, Kalue-Mbeya, Matogoro- Songea, Changarawe-Iringa, Lilungu-Mtwara, Gairo-Dodoma, Loksale -Arusha, Mnyusi- Tanga na Dar – es Salaam; and Install new VHF main at Mwanza and KIA Airports
20,500 long course Establishment of 62,000,000.00 62,000,000.00 Number of students trained students enrolled University of Transport in transport sector
Establishment of 21,250,000,000.00 21,250,000,000.00 Centre of Excellence in Aviation and Transport Operation
Establishment of 2,100,000 2,100,000 Regional Centre of Excellence in Road Safety
Establishment of 17,400,000,000.00 17,400,000,000.00 Technician Training and Technology Incubation Centre for Maritime and Oil/Gas Industries at NIT Lindi Campus
“Realising Competitiveness and Industrialisation for Human Development ” 207 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 208
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Establishment of 18,070,000,000.00 18,070,000,000.00 Technician Training and Technology Incubation Centre for the Railways Industry at NIT Dodoma Campus
Procurement of 7,000,000,000 7,000,000,000 Teaching facilities in place teaching simulator at Dar es Salaam Maritime Institute (DMI)
20. Procure and 816,000 passengers Construction of 11 new 534,000,000,000.00 534,000,000,000.00 A total of 12 new vessels rehabilitate marine and 1,088,040tons vessels in Lake Victoria constructed in Lake Victoria, vessels from 22 operating and Tanganyika and Tanganyika and in the Indian vessels Indian Ocean Ocean by 2025
Major rehabilitation of A total of 12 existing vessels in 12 existing vessels Lake Victoria, Tanganyika and Nyasa rehabilitated by 2025
90,180 tourists Construction of 3 new 6,000,000,000.00 6,000,000,000.00 3 new tourist boats acquired transported per tourist boats in Lake by 2025 annum Victoria and Tanganyika and Nyasa
21. Continue the 33 Main line Procurement and 30,000,000,000.00 30,000,000,000.00 Rolling stock improved by improvement of locomotives Rehabilitation 2025 railway infrastructure of TAZARA, Central, 9 Shunting 10,500,000,000.00 10,500,000,000.00 Trade and Transport Eastern and Locomotives between Tanzania and Land Southern railway locked /linked countries 1050 62,900,000,000.00 62,900,000,000.00 lines and Rehabilitate facilitated existing rolling 1 Tamping Machine Procure 1 New 8,150,000,000.00 8,150,000,000.00 stocks; Tamping Machine No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
1 New Ballast Procure 1 New 5,705,000,000.00 5,705,000,000.00 Regulator Tamping Machine
6 Trolley Procure 2 New Trolley 1,400,000,000.00 1,400,000,000.00
20 Trolley 24 HP Procure 20 New Trolley 70,050,000.00 70,050,000.00 24 HP
6000 Rail Procure 6,000 pcs 83,400,000,000.00 83,400,000,000.00 Wooden Sleepers
60,000 Pcs Procure 60,000 pcs 8,050,000,000.00 8,050,000,000.00 Wooden Sleepers
52,000Pcs Procure 52,000 pcs 1,908,000,000.00 1,908,000,000.00 Concrete Sleepers
Availability of Spare Maintenance and 1,970,000,000.00 1,970,000,000.00 parts Rehabilitation project
318 Bridges and Maintenance and 5,510,000,000.00 5,510,000,000.00 Culverts Rehabilitation of 318 Bridges and Culverts
Along the line Rehabilitation of 2,770,000,000.00 2,770,000,000.00 building and offices along the line
The system in place Signaling and 50,290,000,000.00 50,290,000,000.00 Communication system
1 Quarries Rehabilitation of 4,540,000,000.00 4,540,000,000.00 Quarries equipment
3 workshops (DSM, Rehabilitation of 18,640,000,000.00 18,640,000,000.00 MBY and MPK) Quarries equipment
“Realising Competitiveness and Industrialisation for Human Development ” 209 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 210
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Locomotive Deport Rehabilitation of 237,000,000.00 237,000,000.00 and VRS Locomotive Deports and Vehicle Repair Shops (VRS)
22. Automate Land ICT systems and Improvement, 2,500,000,000. 2,500,000,000 • Advanced data processing Transport Services Infrastructure integration with technologies utilized for supportive stakeholders and Local • Vehicle tracking coverage road services and capacity building increased developed and for Vehicle Tracking integrated with System • Local capacity on VTS stakeholders by June system developed 2025; • VTS integrated with other stakeholders
Improvement of Road 1,500,000,000 1,500,000,000. Road and Railways and Railway Information Information Management Management System Systems Improved (RRIMS)
Installation of Passenger 1,500,000,000. 1,500,000,000. Passenger Management Management Information System installed Information System and available online infrastructure
Development and 1,000,000,000 1,000,000,000 Commercial Drivers’ Testing improvement of automated Commercial Drivers’ Testing systems
Maintenance and 2,500,000,000. 2,500,000,000. Efficient ICT infrastructure improvement of LATRA in place ICT infrastructure No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
23. Strengthen Road and Vehicle Inspections Construction of 15,000,000,000 15,000,000,000 Vehicle Inspections and Railway Transport and drivers testing Commercial Vehicle drivers testing centers Safety centres established Inspection Centres established by June 2025. at Mwanza, Arusha, Mbeya, Kibaha and Dodoma.
Development and 2,500,000,000. 2,500,000,000 operationalization of Commercial Drivers Testing and Train Drivers Testing Centres
Inspections of To Investigate 500,000,000 500,000,000 Safe and reliable transport infrastructure, rolling the Reported stock and operations Railway Accidents of railways (TAZARA-TRC) conducted by June, 2025 To develop SGR 400,000,000 400,000,000 SGR Safety Standards in Safety Standards place (infrastructure and Rolling’s stock) and finalization for SGR commission
24. Promote Land 20 Market surveys Conduct Studies, 1,000,000,000 1,000,000,000 Research reports on Land Transport Service on land transport Research and transport available Competition and services conducted benchmark on Economic Efficiency by June, 2025 efficiency of land transport services
Research framework Conduct survey for 500,000,000 500,000,000 Number of baseline developed and establishing service indicators developed implemented by delivery baseline June, 2025 indicators of LATRA
“Realising Competitiveness and Industrialisation for Human Development ” 211 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 212
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
25. Promote Rural Rural Transport Conduct Studies, 500,000,000 500,000,000 Improved rural land Transport Services Services improved Research and transport system by June 2025 benchmark on regulatory mechanism for promoting and improving rural land transport services
SUBTOTAL 20,154,266,152,454 21,314,100,000 9,600,000,000,000 29,775,580,252,454
COMMUNICATION
1 Expand or extend 15,000 Km of optic National ICT Broadband 800,000,000,000 800,000,000,000 Increase availability and the National fibre laid and Infrastructure (NICTBB) access of broadband services Telecommunica- connected [Project Number 4283] countywide; tion Broadband infrastructure and Upgrading telecommu- 193,000,000,000 60,000,000,000 253,000,000,000 Ensure 80% of Tanzanian are services to increase nication towers with connected with broadband collaboration with 2G technology to 3G or service providers higher technology and private sector on 2,388 Telecommu- Construction of telecom- 51,528,360,000 51,528,360,000 100% of Tanzanian have rural ICT investments. nication Towers munication infrastruc- access to telecommunica- constructed and tures in rural and urban tion services. operated under-served area.
2 Developing National National Addressing National Addressing 100,000,000,000 100,000,000,000 All wards have access to Physical Address and Postcode and Postcode System physical addressing system System in all wards System established (NAPS) services in 4,067 wards No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
3 Promote increased Digital Tanzania 352,816,500,000 352,816,500,000 Connecting Digital utilisation of technology with well - being development of local people possibilities offered by the Internet while protecting against gender-based Internet abuses especially against children;
4 Strengthen the Five (5) Empowering five 196,467,060,000 196,467,060,000 Well established and operational communication (5) Communication operational National effectiveness sector Government Sector authorities Center for ICT Research and of national institutions to operationalize innovation and ICT parks communication authorities facilitated effectively institutions;
5 Establish ICT Centres ICT Innovation 446,724,400,000 446,724,400,000 Development of five of Excellences, and Softcenter Research and innovation Support local R&D in Development [Project soft centers to produce new ICT, ICT innovation, Number 6226] software products promotion of new Well established and products, processes operational National and patenting Center for ICT Research and (innovation); innovation and ICT parks
6 Encourage Two (2) ICT Construction of ICT 50,000,000,000 50,000,000,000 Production of ICT products investment and equipment plants equipment plants and services locally for local local manufacturing constructed use and export; of ICT equipment and its end life One (1) Develop mobile phone 4,447,825,000 4,447,825,000 Full in operation Mobile management; mobile phone factory under PPP. factory manufacturing plant established
“Realising Competitiveness and Industrialisation for Human Development ” 213 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 214
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
7 Secure international 36,000,000,000 36,000,000,000 Well established scientific, technical international scientific, and innovation technical and innovation cooperation cooperation. agreements
SUB TOTAL 1,878,167,645,000 412,816,500,000 4,000,000,000 2,294,984,145,000
TOTAL 64,288,419,777,454 4,543,320,441,614 60,299,200,000,000 129,130,940,219,068 B. IMPLEMENTATION MATRIX FOR PROMOTING INDUSTRIALIZATION FOR ECONOMIC GROWTH INTERVENTIONS
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
AGRICULTURE
AGRICULTURE – CROPS
1 Expand sustainable (i) Area under Agricultural Sector 364,492,000,000 386,869,600,000 287,808,000,000 1,039,169,600,000292 i) Irrigated area increased water and land irrigation will increase Development from 694,715 hectares use management from 694,715 Programme (ASDP) II to 1,200,000 hectares. 88 through integrated hectares to 1,200,000 rainwater harvesting dam land use planning hectares by 2025 constructed and improvement of irrigation systems Land use planning Agricultural Sector 227,700,870 319,270,180 1,915,600,310.0 2,462,571,360 i) Large scale farms and watershed Development increased from 110 to 200 management Programme (ASDP) II, ii) Soil fertility with 630,000 enhanced by 2025 Water and Lands Ha of cultivated land affected by ph related constraints imroved in Ruvuma, Iringa, Njombe, Rukwa, Songwe, Mbeya and Katavi regions
Resilience for Climate Agricultural Sector 555,100,000 13,877,000,000 832,600,000 15,264,700,000 i) LGAs with climate Variability/Change Development resilience increased and Natural Disasters Programme (ASDP) II, from 87 to 185 ii) LGAs Mainstreamed by Environment, Water, adopted climate smart 2025 Lands and Natural agriculture practices and Resource technologies increased from 87 to 185
Agricultural Sector 465,900,000 164,800,000 198,900,000 829,600,000 i) Food security monitoring Development systems strengthened ii) Programme (ASDP) II Rainfall data collection centred and strengthened
“Realising Competitiveness and Industrialisation for Human Development ” 215 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 216
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
(i) Production and Agricultural Sector 14,872,000,000 11,256,000,000 11,276,000,000 37,404,000,000 i) Crop suitability Productivity of food Development map prepared and crops increased by Programme (ASDP) II desseminated 2025/2026. ii) improved varieities that are highly yielding, resistance to pest and disease, drought torelant and disired traits iii) Increase production and productivity of food crops
2 Enhancing Research (ii) Timely Agricultural Sector 6,979,700,600 1,699,400,000 1,019,600,400 9,698,701,000 i) National Biological and Development availability and timely Development Control Unit (NBCU) (R&D) in strategic distribution of Agro Programme (ASDP) II strengtherned by 2025 crops inputs improved by ii) Management of invasive 2025 plant pest strengtherned iii) control system of armyworrm, locust, birds, and other outbreak strengtherned
Agricultural Sector 15,641,900,000 3,910,480,000 2,346,290,000 21,898,670,000 Increse in accessibility of Development agricultural inputs Programme (ASDP) II
(iv) Agricultural Agricultural Sector 4,132,100,000 2,830,200,000 1,698,100,000 8,660,400,000 i) Number of client oriented research and Development research technologies extension services Programme (ASDP) II developed strengthened by ii) Research infrastructure 2025 improved iii) capacity of researcher improved i No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Agricultural Sector 6,289,000,000 15,722,000 15,722,000 6,320,444,000 Extension strengthened Development Programme (ASDP) II
Agricultural Sector 3,551,700,000 1,379,200,000 8,275,000,000 13,205,900,000 i) enrolment of students in Development the training institutes & Programme (ASDP) II centre increased
3 Enhancing (ii) Timely availability Agricultural Sector 2,642,500,000 1,606,300,000 9,638,000,000 13,886,800,000 Accessibility and use of productivity in and timely Development agricultural mechanizations strategic crop distribution of Agro Programme (ASDP) II increased from 20% to 35% . production inputs improved by 2025
Production of highly Agricultural Sector 3,437,900,000 400,000,000 638,000,000 4,475,900,000 i) Wheat production demanded domestic Development increased from 63,000 crops include wheat, Programme (ASDP) II tons to 200,000 tons. palm oil, sugarcane, ii) Decrease in wheat and sunflower importation
Agricultural Sector 24,600,000,000 83,670,000,000 7,465,000,000 115,735,000,000 i) Palm oil production Development increased from 1,744,000 Programme (ASDP) II seedling to 10,000,000 seedling. ii) Decrease in palm oil importation.
Agricultural Sector 366,000,000 1,125,000,000 1,560,000,000 3,051,000,000 i) Sugar production Development increased from 345,000 Programme (ASDP) II tons to 700,000 tons ii) Decrease in gap sugar importation
“Realising Competitiveness and Industrialisation for Human Development ” 217 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 218
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Agricultural Sector 3,320,000,000 2,230,000,000 2,300,000,000 7,850,000,000 i) Sunflower production Development increased from 790,000 Programme (ASDP) II tones to1,500,000 tones. ii) Decrease importation of cooking oil
Increase Production Agricultural Sector 12,681,000,000 6,703,000,000 40,220,000,000 59,604,000,000 Production Horticulture Horticulture crops Development crops increased from from 6,556,102 tons Programme (ASDP) II 6,556,102 tons in 2018/2019 in 2018/2019 to to 14,600,000 tons by 14,600,000 tons by 2025/2026 2025/2026
Reduced food crop Agricultural Sector 1,120,000,000 1,300,000,000 1,263,000,000 3,683,000,000 i) Postharvest losses postharvest losses by Development on major food crops 50% 2025 Programme (ASDP) II & reduced 17.5% ii) National TAIDF guidelines on harvesting and post-harvest handling of food crops available iii) Post harvest management improved
(vii) Production Agricultural Sector 5,560,000,000 5,210,000,000 42,500,000,000 53,270,000,000 i) increase in production and productivity Development and productivity of for traditional cash Programme (ASDP) II traditional crops crops from 794,000 in 2019/2020 to 1,583,200 by 2025/26
4 Competitive crop (i) Agricultural Agricultural Sector 441,300,400 435,330,500 421,200,100 1,297,831,000 i) Accessibility and value chains and Financial Systems Development availability of agricultural commercialization strengthened by Programme (ASDP) II finance for investment strengthened 2025/2026 improved ii) Increase the agricultural investment No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Development of Agricultural Sector 19,320,000,856 28,302,000,140 16,981,000,284 64,603,001,280 i) 14 warehouses with processing and value Development a storage capacity of addition for crop Programme (ASDP) II & 34,000 tons in 10 regions products TAIDF constructed ii) 13 silos with a capacity to store 97,000 tons constructed iii) 11 warehouses with a storage capacity of 59,000 tons rehabilitated
Agricultural Sector 833,500,000 525,600,000 116,000,000 1,475,100,000 i) Agro-processing industry Development of priority food crops Programme (ASDP) II (horticultural, palm oil, sunflower and cassava) established ii) Paddy milling machine with capacity of 96MT/day and maize milling machine with capacity of 126MT/ day in Mwanza installed iii) Increase production of cassava for export
Availability of local Agricultural Sector 488,740,000 322,180,000 73,310,000 884,230,000 (i) Agriculture market and international Development information strengthened. market for crops Programme (ASDP) II (ii) Crop market system produced in the established (iii)strong country strengthened contract farming system by 2025/2026. developed
“Realising Competitiveness and Industrialisation for Human Development ” 219 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 220
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5 Strengthen Policy and Agricultural Sector 384,170,764 460,440,410 276,260,646 1,120,871,820 ii. Laws and Regulations for institutions, enablers Regulatory Development institutions reviewed by and coordination Framework Programme (ASDP) II 2025 framework and Business Environment Agricultural Sector 292,000,000 45,200,000 65,300,000 402,500,000 i) Legal Framework for strengthened by Development management of land 2025 Programme (ASDP) II utilizations, development and coordination of agricultural systems, extension services and promote utilization of agricultural mechanization established ii) Authority and Regulations for managing plant health established
6 Encourage the use Cooperative society's Agricultural SectorDe- 2,673,000,200 6,683,000,000 400,900,800 9,756,901,000 i) Number of industries of ICT in operation of perfomance velopemnt Programe owned by Cooperatives cooperatives strengthened by (ASDP) II incresed to 183 2025 ii) Number of Cooperative members increased from 5.9 million to 14.5 million by 2025.
7 Introduce modern Food and nutrition Agricultural Sector 13,200,000,000 2,300,000,000 5,600,000,000 21,100,000,000 i) 56 silo with capacity crop management Security Improved Development of 190,000 and 9 systems. by 2025 Programme (ASDP) II warehouses with storage capacity of 60,000 in seven NFRA zones constructed. Ii) increase NFRA storage capacity from 501,000 to 700,000 for food security No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Agricultural Sector 986,800,000 i) Multipilcation of the seed, Development 394,700,200 592,000,800 1,973,501,000 seedling and cuttings Programme (ASDP) II of nutrient rich varieties incresed
SUBTOTAL 508,961,913,890 564,626,523,230 445,495,785,340 1,519,084,222,460
LIVESTOCK
1 Increase the number 50% of quality hides Agricultural Sector 16,732,000,000 0 721,500,000,000 738,232,000,00 0 (i) Hides and skins collection and capacity of and skin Development centres constructed and processing industries 14% of Milk Programme (ASDP) II operationalized by 2025; for livestock products Processed (ii) TANLITS operationalized (hides/skins, milk and 500 tons of Meat by 2022; meat) Processed70% of cattle registered in (iii) Livestock farmers TANLITS database. educated on TANLITS by 2023.
2 Construct and 480 primary Agricultural Sector 168,700,000,000 0 0 168,700,000,000 (i) Improved livestock improve primary, livestock markets Development markets infrastructure by secondary and rehabilitated; 14 Programme (ASDP) II 2024. border livestock livestock secondary (ii) Increased number of milk markets, modern markets and 12 collection centres in the abattoirs and the boarder markets country by 2025. construction of milk improved. collection centers (iii) Increased number of 24 primary livestock livestock markets by 2025. markets constructed and 24 primary markets upgraded to to secondary and boarder markets.
“Realising Competitiveness and Industrialisation for Human Development ” 221 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 222
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
3 Sensitize and 2,769 in calf heifers Agricultural Sector 40,951,536,000 0 10,500,000,000 51,451,536,000 (i) Increased population of facilitate livestock produced per Development daiy cattle for increasing keepers to improve year in Livestock Programme (ASDP) II production of milk by 2025. their herds by raising Multiplication Units. (ii) NAIC infrastructure livestock breeds improved and working that produce high 80% conception tools in place by 2022. quantity and quality rate from semen of milk, meat and produced by NAIC (iii) 6 Zonal Artificial eggs; Insemination Centres 5 indigenous chicken equiped by 2022. breeding centres established. (iv) Relaible supply of indegenous chicken by 2023.
1 domestic investor Relaible supply of broilers in production of and layers by 2025. chicken parent stock
2 Poultry Centres Two (2) Poultry Centres of of Excellency in Excellency in place by 2022. Government farms.
4 Strengthen NARCO by 70% of land Agricultural Sector 37,880,000,000 0 0 37,880,000,000 (i) Increased production of improving 5 ranches carrying capacity Development beef by 2025. (Kongwa, Ruvu, accommodated Programme (ASDP) II (ii) Improved NARCOs Kalambo, Missenyi working environment and West Kilimanjaro) annually. in order to increase productivity in meat value chain No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5 Strengthen animal 10,000 hactres of Agricultural Sector 10,000,000,000 0 0 10,000,000,000 5 functional designated diseases surveillance livestock diseases Development diseases free compartments systems. free compartments Programme (ASDP) II by 2025. designated.
12% of livestock Agricultural Sector 19,185,000,000 0 0 19,185,000,000 Reduced prevalance of mortality rate due to Development trans-boundary deseases and diseases. Programme (ASDP) II zoonotic deseases by 2025.
6 Facilitate availability 50% livestock Agricultural Sector 231,834,100,000 0 578,034,400,000 809,868,500,000 Reliable supply of vaccines and affordablility of vaccination coverage Development at affordable price by 2025. vaccines. Programme (ASDP) II Reliable supply of vaccines at affordable price by 2025.
7 Facilitate dipping of 85% of livestock Agricultural Sector 257,650,000,000 377,650,000,000 Reliable supply of acaricides livestock for parasite dipped Development at affordable price by 2025. control. Programme (ASDP) II
8 Improving the 149 veterinary clinics Agricultural Sector 67,665,000,000 0 0 67,665,000,000 Reliability of animal health management and constructed and 38 Development facilities which in turn use of fodder for retooled. Programme (ASDP) II reduces prevalence of livestock; livestock diseases by 2025.
9 Increase acreage 6,000,000 hactres Agricultural Sector 22,055,494,150 100,000,000,000 122,055,494,150 Reliable availability of of grazing land of grazing land Development pasture for livestock by 2025 demarcated, surveyed demarcated and Programme (ASDP) II and developed. surveyed
2,000,000 hay bales Agricultural Sector 1,000,000,000 1,000,000,000 Improved farm equipment’s produced Development and infrastructure in place Programme (ASDP) II by 2023
10 Promote investment 8 tons of animal Agricultural Sector 200,000,000 11,000,000,000 11,200,000,000 Domestic production of in compounded feeds produced. Development animal feeds additives by animal feeds and feed Programme (ASDP) II/ 2025. additives industries. TAIDF
“Realising Competitiveness and Industrialisation for Human Development ” 223 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 224
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
11 Increase the 1,842 charcoal dams Agricultural Sector 481,890,000,000 0 0 481,890,000,000 Reliable supply of water for number of water and 225 boreholes. Development livestock by 2025 infrastructure for Programme (ASDP) II livestock.
12 Develop and 5 Certified pasture Agricultural Sector 5,725,000,000 0 0 5,725,000,000 Livestock farmers access disseminate modern seeds (ii)weight gain Development information on increasing technological of 300 grammes a Programme (ASDP) II production and productivity packages in livestock day for cattle under by 2025. product production, feedlot. productivity and marketing.
13 Facilitate research in 10 liters of milk a day Agricultural Sector 16,047,000,000 0 2,600,000,000 18,647,000,000 Increase in livestock livestock, livestock for Mpwapwa Cattle Development production and productivity. products and breed Programme (ASDP) II conservation of 6 livestock vaccines livestock breeds and in place. strengthen livestock 5 Pasture Seeds gene bank. Certified 7 new social economic researches undertaken.
14 Facilitate student 9,760 students Agricultural Sector 21,000,000,000 0 0 21,000,000,000 LITAs enrolment capacity enrolment in enrolled Development increased by June 2025. livestock training Programme (ASDP) II institutions. No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
15 Increase the number 16,000 Extension Agricultural Sector 73,120,020,000 0 65,571,190,000 138,691,210,000 All Wards and Villages of extension officers, Officers at village Development accessed with extension facilitate availability and Ward levels and Programme (ASDP) II officers by 2025 of improved 17,848 Extension extension service Officers trained as ToT delivery at village, and ward levels. 184 LGAs trained Agricultural Sector 1,110,000,000 0 0 1,110,000,000 Increased number of LGAs on climate smart Development with Livestock farmers using agriculture in Programme (ASDP) II biogas. livestock sector.
National Livestock Agricultural Sector 1,100,000,000 450,000,000 0 1,550,000,000 (i) Reviewed National Policy Reviewed Development Livestock Policy in place Programme (ASDP) II by 2022. (ii) Reviewed livestock sector legislations in favour of trade and investments by 2023.
SUBTOTAL 1,473,845,150,150 450,000,000 965,600,000,000 2,439,895,150,150
FISHERIES
1 Increase Fishing 5% contribution of Agricultural Sector 1,850,000,000 processing industries the fisheries sector Development along coastal areas to GDP Programme (ASDP) II/ and lakes (Victoria, TAIDF Tanganyika and Nyasa) 17 processing Agricultural and 5,398,793,692 6,000,000,000 7,850,000,000 Fishing processing industries industries Fisheries Development along coastal areas and lakes Programme/TAIDF (Victoria, Tanganyika and Nyasa) increased
“Realising Competitiveness and Industrialisation for Human Development ” 225 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 226
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Agricultural Sector 21,595,174,768.00 26,993,968,460 Development Programme (ASDP) II/ TAIDF
One (1) fishing Agricultural Sector 366,929,160,000 156,000,000.00 387,627,728,000 Fishing harbour along harbour Development the coastline of Tanzania Programme (ASDP) II Constructed
2 Establish Fishing Agricultural Sector 18,734,740.81 312,000,000 330,734,741 Fishing gears (nets, boats gears (nets, boats Development etc) manufacturing etc) manufacturing Programme (ASDP) II industries established industries
3 Establish fish feed 2,500 tons fish feed Agricultural Sector 4,607,520,000.00 4,607,520,000 Fish Feed Manufacturing manufacturing production per year. Development Industries Established industries Programme (ASDP) II/ TAIDF
4 Construction of Fishing harbour along the coastline of Tanzania
5 Support private Reduce post-harvest Agricultural Sector 981,787,000.00 981,787,000 Fishing Infrastructure sector to establish loss by 20% Development (landing sites, Cold Storage and rehabilitate Programme (ASDP) II facilities, Fish Markets ) fishing industries; 46 landing site; Constructed 21 Fish Markets Agricultural and Fisheries Development Programme/TAIDF
6 Strengthening Use of appropriate Agricultural Sector 1,540,000,000 1,540,000,000 Strengthened fisheries fisheries research fisheries Development research and appropriate and improve technologies Programme (ASDP) II fisheries technologies appropriate fisheries improved or adopted technologies No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
7 Conserve marine and IUU fishing Agricultural Sector 800,000,000 800,000,000 Aquatic biodiversity and freshwater fisheries eliminated by 98% Development environment protected and protected areas 10% of marine area Programme (ASDP) II conserved protected
8 Support investment 12 Aquaculture Agricultural Sector 2,500,000,000 8,000,000 2,508,000,000 Established and in fisheries and Development Development Strengthened Aquaculture aquaculture Centres Programme (ASDP) II Development Centres (ADC) infrastructure and facilities including promotion of commercial aquaculture production
9 Ensure access to 62,000 tons exported Agricultural Sector 2,800,000,000 2,800,000,000 Fish and fisheries products capital, expertise, per year Development utilization, safety and quality skills, knowledge Programme (ASDP) II standards improved for and fishing gears the domestic, regional and to small-scale global markets fishermen through their respective social groups;
10 Provide appropriate 1,850 extension Agricultural Sector 3,200,000,000 3,200,000,000 Provision of demand driven extension services officers Development quality and timely fisheries to transform fishing Programme (ASDP) II extension services improved. practice
SUB TOTAL 390,607,260,692 39,087,202,741 27,907,174,768 457,601,638,201
“Realising Competitiveness and Industrialisation for Human Development ” 227 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 228
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
MINING
1 Strengthen the 100 permits for TSF Sustainable 900,000,000.00 Geochem and geo-tech management and construction and Management of 900,000,000 stability of TSF and WRD control of large operation issued by Mineral Resources MCP and Mining Plan and medium scale 2025. Project (SMMRP) approved mining 100 Mine closure TSF and WRD permits issued Plans (MCPs) approved by 2025 50 Mining Plans approved by 2025
227 employees 920,000,000 920,000,000.00 Increased revenues contracted collection
98% of the Management Control by managerial position 1,500,000,000.00 1,500,000,000.00 Tanzanians in Large and to be held by medium scale mining Tanzanians.
40 motor vehicles 6,684,582,680.00 6,684,582,680.00 Increased revenues acquired. collection
25 reports on Local 1,200,000,000 1,200,000,000 Greater participation of Content and 15 CSR Tanzanians in the Mining report prepared and sector, submitted by 2025. Technology transfer to Tanzanians, Economic growth of the Country No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2 Empower small-scale 1500 Prospecting 919,056,000.00 Increased revenue collection miners to participate Licenses, 8,000 919,056,000.00 Growth of the sector and its in feasible mining Primary Mining contribution to the GDP activities by Licenses (PML) and licensing areas with 100 Mining Licenses basic geological issued by June, 2026 information, necessary training on 19,157 PMLs granted 581,000,000 581,000,000 Formalized small scale productive mining by 2025 and 100 new miners and mining business Small-Scale Mines through STAMICO; developed by 2025.
3 Strengthen the 20% of country 8,103,000,000 8,103,000,000 i. Availability of coal Mining Commission, covered by high quantity data and Geological Survey resolution airborne percent of purity of Tanzania geophysical surveys; to enable power (GST) Institute 10 QDS (equip to 3% generation for domestic and Tanzania to make 98%); 25% use. Gemmological of country covered ii. Availability of statistics of Centre (TGC). by geochemical strategic minerals (REE) surveys; 85% of for informed design geological maps making for investment and geo-scientific on mining sector. information digitalized; and iii. Increase awareness To publish 20 on land use planning geoscientific research for safety residential papers and journals purposes.
“Realising Competitiveness and Industrialisation for Human Development ” 229 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 230
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
4. Strengthen the TZS 1 trillion of 5,646,695,054 5,646,695,054 Accurate valuation of Mining Commission Government mineral value; Increased so that it continues revenues collected employment especially for to oversee mining by 2025 youth and availability of activities, collect data accurate minerals statistics. and track mineral revenue for the Construction of 2,256,142,753.3 2,256,142,753.3 Improved Working condition purpose of increasing Mining Commission Government revenue HQ Office "5 large scale mines, 1,500,000,000 1,500,000,000 Safe working environment 1000 medium scale for miners improved (zero mines and 15,000 accidents/incidents) small scale mines Complying with legislation inspected/audited by 2025.
Provide training on health, safety, environment and explosive management for 40,000 small scale miners by November, 2025 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Five (5) Small Scale 195,463,688,803 195,463,688,803 Formalized Artisanal; Mining Miners’ organizations Businesses and increase trained and contributions of ASM to the facilitated to secure National Economy; capital by June, 2026. Increase productivity to 10 ASM potential ASM which will increase mining areas explored government revenue by June, 2026. through taxes; Coal production at Coal production Increases to Kabulo and Kiwira meet country coal needs Project increased by Conserving the environment 70% by June, 2026. by reducing deforestation. Development As well increase revenue to of Chigongwe Corporation. Quarry, Kiwira Coal Increase revenue Briquettes, Chemicals, for Corporation and Explosive and Gold contribution to Government Projects Operational- through taxes ized by June, 2026.
6 TEITI reports,10 2,320,000,000 86,304,400 2,320,000,000 Transparency and awareness raise and accountability in extractive activities on use of sector improved; EITI Data and 50 • Payment made by extractive companies extractive sector and registered in revenues received by a Register for Government for fiscal; Disclosing Beneficial year 2019/2020 to Ownership 2024/2025 published; Information. • Beneficial ownership register built ; and • Awareness about the use of EITI Data enhanced.
“Realising Competitiveness and Industrialisation for Human Development ” 231 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 232
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Promote mineral 2 Processing licenses 1,500,000,000 1,500,000,000 Increasing employment value addition and (PCL), 2 Refineries opportunities especially for beneficiation. (RFL) granted by 2025 youth and women, ensuring that the Government About 95% of 980,000,000.0 980,000,000.0 receives revenue from the exports processed entire value chain, Promoting technology to Construction of new 10,300,000,000 Tanzanians building for students, 10,300,000,000 staff offices and other uses by 2025
100 gemmological 1,800,000,000 equipment, 100 1,800,000,000 lapidary equipment, 150 jewellery equipment and 100 gem and rock carving equipment procured by 2025.
New 200 reference 150,000,000.0 150,000,000.0 books procured by 2025.
4 vehicles to be 900,000,000 900,000,000 procured by 2025.
120 CCTV Camera 90,000,000 90,000,000 installed by 2025.
New Hostel and 500,000,000 500,000,000 cafeteria furniture procured by 2025. No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
10 types of Rocks 600,000,000 600,000,000 and minerals samples procured by 2025.
10 Staff to be 1,050,000,000 1,050,000,000 trained in the field of Gemmology, Lapidary and Jewellery Design and Manufacturing by 2025.
6. Strengthen 8 mineral markets 4,824,908,257 4,824,908,257 Reduce the recurring effects Corporation and and 21 mineral of arbitrary mining Mineral Markets, buying centers • Reduce and ultimately Demonstration established by eliminate the use of Centres and Centres 2025, 5 Centers mercury in gold refining of Excellence of excellence that affects human health and 3 Mineral and the environment. Demonstration Centers established Strengthening the by 2025 performance of Resident Mining Officer’s Office in Songwe, Manyara, Iringa, Rukwa and Tanga Regions
Kalema Gold Market 772,764,177 772,764,177 Improve trading of imported established minerals and revenues increase from Kalema Gold Market
7. Identify, promote 5 new strategic 2,000,000,000 2,000,000,000 Strategic mineral production and facilitate mineral potentials increased. extraction of rare identified by 2025. minerals
SUBTOTAL 256,277,704,074.3 86,304,400 0 256,277,704,074.3
“Realising Competitiveness and Industrialisation for Human Development ” 233 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 234
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
MANUFACTURING
1. Promote investment Bagamoyo SEZ Tanzania Mini Tiger 97,441,709,753 Bagamoyo SEZ operation- and trade for SEZs/ developed by 2025 Plan 97,441,709,753 alized EPZ Kigoma SEZ and Development of 60,750,000,000 Tanga, Kigoma, Kahama, other SEZ developed Special Economic 60,750,000,000 Bunda, Songwe, Manyara by 2025 Zones Project and Mtwara SEZ construction completed and operationalized
Pharmaceuti- Institutional 31,750,000,000 73,370,000,000 Industrial sheds and cals industries support-TAMCO 105,120,000,000 assembly plants constructed Textile & Apparel Industrial Park project manufacturing and Motor Vehicles Assembly plant increased by 2025
2. Develop Trade and Kurasini Trade and EPZ Development 58,930,495,711 Kurasini Trade and Logistic logistics as well as Logistics Center -Kurasini Trade and 58,930,495,711 Centre finalised and opera- Agro-industrial Parks developed by 2025 Logistics Centre Project tionalised
3. Develop Iron and Coal & iron ore Mine, Mchuchuma and 4,742,000,000 5,579,037,000,000 Production of coal 3.0M Steel technologies Power Station, iron Liganga Projects 5,583,779,000,000 tpa and generation of from locally available and steel plant and 600MW coal power ore deposits and Transmission Line from Mchuchuma, and revamping of linking Mchuchuma production of 1.0Mt/y of privatized industries and Liganga steel from Liganga established by 2025 Katewaka Coal project 3,200,000,000 46,000,000,000 1.0Mtpa Katewaka coal 49,200,000,000 mining established
Mhukuru coal Project 500,000,000 500,000,000 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Revamp of General General/Arusha Tyre 1,200,000,000 690,000,000,000 General Tyre manufacturing Tyre Manufacturing Manufacturing Plant 691,200,000,000 plant revived and operation- Plant by 2025 alized
Rehabilitate KMTC Kilimanjaro Machine 4,260,680,544 4,000,000,000 Effective operation of KMTC by 2023 Tool project 8,260,680,544
TAMCO Tractor Institutional 1,088,300,000 TAMCO Tractor assembly Assembly plant support-URSUS Tractors 1,088,300,000 plant operations improved strengthened by 2025
4 Promote production soda ash extraction Engaruka Soda Ash 39,750,000,000 401,458,000,000 Engaruka Soda ash of Sodium plant with capacity Project /Natron 441,208,000,000 extraction plant constructed Carbonate, glass, of 1.0 million and operationalized Chlor- Alkali tons per annum products, Pure constructed by 2025 Aluminium and associated products, Helium Gas and other chemicals
5. Promote and Finalize construction Program for Country 3,500,000,000 Zuzu leather cluster opera- support agro and rehabilitation of Partnership (PCP) & 3,500,000,000 tionalized – processing ZUZU leather cluster ASDP II industries, in Dodoma by 2025 particularly leather and edible oils Review and Program for Country 1,250,000,000 Cotton to cloth industries implement Cotton to Partnership (PCP) & 1,250,000,000 strategy reviewed and Cloth Strategy (C2C) ASDP II implementation started by 2025
“Realising Competitiveness and Industrialisation for Human Development ” 235 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 236
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Sunflower and Integrated Industrial 3,550,000,000 1,350,000,000 Reduction in Imports of Groundnuts edible Development 4,900,000,000 Edible Oil; Industrial shed oil extraction Programme/PCP & and oil processing plant plant in Dodoma ASDP II constructed and operation- and Singida, and alized development of Palm oil industrial shed in Kigoma established and operationalized by 2025
Cotton Seed Oil TAIDF & PCP 2,000,500,000 25,000,000,000 cotton seed oil processing industries in lake 27,000,500,000 industries constructed and zone established operationalized
SUBTOTAL 313,913,686,008 - 6,820,215,000,000 7,134,128,686,008
SMALL AND MEDIUM ENTREPRISES DEVELOPMENT SECTOR
1. Promote micro, Strengthern Quality Institutional support 11,000,000,000 Program prepaired and small and medium program for MSMEs -SIDO (Code:6260) 11,000,000,000 implemented; MSMESs entrepreneurs by 2025 Quality program for products quality improved MSMEs
Develop Modern Institutional Support 18,500,000,000 Appropiate moder MSMEs MSMEs facilities by (SIDO)- develop 18,500,000,000 facilities developed and 2025 industrial parks/ technologies installed, shed, improve TDCS National coordinating (Code:6260) Institution established No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2. Provide entrepre- Entrepreneurship Institutional 3,504,000,000 NEDF fund mobilized; neurship training access to finance support-SIDO_ 3,504,000,000 Entrepreneur access to and promote and physcial National Entrepreneur- finance increased start-ups eco-system infrastructure ship Development enhanced by 2025 Fund (NEDF) {Project Code:6260)
Developmet of MSMEs 12,000,000,000 12,000,000,000 MSMES physical Industrial park and infrastructure constructed centres - Institutional and operationalized Support (SIDO)- (Project Code:6260)
3. Strengthen R&D in Develop and Research and 0 - 19,600,000,000 Modern and effective manufacturing. strengthern Research Development 19,600,000,000 technologies adapted; and development Programme Increase in quality and institutional capacity (Institutional Support prodcutivity by 2025 for CAMARTEC, TIRDO, TBS, TEMDO, SIDO)
4. Strengthen Tanzania Technology TATC capacity 55,052,320,000 55,052,320,000 Dissemination of technology Automotive Disseminated and development and industrialization by 75% Technology Centre; Industrialized by 75%, by June, 2026
3 R&D laboratories TATC capacity 5,100,000,000 3 R&D laboratories constructed by June, development 5,100,000,000 constructed 2026
Technology base TATC capacity 8,234,205,000 Technology base developed developed by 75 %, development 8,234,205,000 by June,2026
To recruit 290 TATC capacity 320,000,000 320,000,000 290 Employees recruited and employees and human development Human resource developed resource developed by June, 2026
SUBTOTAL 133,310,525,000 - - 133,310,525,000
“Realising Competitiveness and Industrialisation for Human Development ” 237 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 238
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
NATURAL RESOURCES
1. Develop and Zero poaching by Capacity Building in 1,0000,000,000 0 0 1,000,000,000 55,999 of Game Reserves implement strategies year 2025 Game Reserves and road network maintained to combat poaching, Anti-Poaching Unit in illegal trade and Tanzania illegal harvesting of wildlife, forest, Combat poaching and 0 14,614,200,000 0 14,614,200,000 Conservation of wildlife bee and antiquities illegal wildlife trade resources in the in Tanzania through country integrated approach
2. Increase contribution 15 Bee products Beekeeping 3,000,000,000 0 0 3,000,000,000 15 bee products processing of Beekeeping processing industries Development industries in place. sub sector in the in place by 2026 Programme economy Beekeping research, Support to Beekeeping 0 11,615,000,000 0 11,615,000,000 Institutional capacity and data and supporting Value Chain Pro- enabling environment for infrastructure improved gramme-BEVAC beekeeping value chain actors enhanced
3. Improve Infrastructure in in Capacity Building 7500,0000,000 0 0 7500,000,000 Increased knowledge in infrastructure three (3) forestry in Forestry and forestry and beekeeping in Forestry and and beekeeping Beekeeping institutions Beekeeping institutions Instituttions capacitated
4. Promote stakeholder’s 250,000 ha of Private Plantation and 1,640,000,000 0 1,640,000,000 i. 250,000 ha of trees engagement in planted and Value Chain in Tanzania planted; development and managed by small Phase II ii. 9,000 smallholders management of holder free farmers in tree farmers and SMEs plantation forest Southern highlands engaded in forestry resources for value chain business in conservation and the Southern highlands economic growth No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Areas under com- Forestry and Value 10,000,000,000 0 10,000,000,000 i. six (60 Land Use (LUPs) munity-based Chain Development and Village Land Forest forest conservation Programme (FORVAC) Reserves (VLFRs) and private sector established; increased by 100,000 ii. 85 VLFRs mobilised and ha bya 2026 developed; iii. L o w l e v e l o f lawenforcement , forest governance and trade; iv. 850 VNRCs members and 96 District Officials capacitated v. Curriculum of forest value chain developed; vi. Forestry database updated.
SUBTOTAL 4,750,000,000 37,869,200,000 0 42,619,200,000
TOTAL 3,081,666,239,814.30 642,119,230,371 8,259,217,960,108 11,983,003,430,293.30
“Realising Competitiveness and Industrialisation for Human Development ” 239 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 240
C. IMPLEMENTATION MATRIX FOR TRADE AND INVESTMENT INTERVENTIONS
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
TRADE
1 Identify and Bilateral and Bilateral, regional 500,000,000 500,000,000 International trade facilitated; negotiate better Multilateral trade and multilateral Trade Missions in Strategic market access undertaking engagements. Countries conducted; opportunities for enhanced by 2025 Bilateral Agreements domestic produced negotiated goods and services;
Market Access for EU - EAC Markup 250,000,000 250,000,000 Effective Utilizationa of domestically produced Project for helping Market Access Opportunities goods enhanced by MSMEs to produce at 2025 quality with less cost and access European Market
2 Simplify and Eliminate NTBS by TMEA Project (Trade 150,000,000 150,000,000 Smooth operation of trade streamline regulatory 2025 Facilitation Project) reforms to address and COMESA Project non-tariff barriers; for Supporting Border Markets TBT and SPS TRASE (37 Venture) 150,000,000 150,000,000 Effective utilization of regulatory EU Project for international markets requirements supporting SPS facilitated by 2025 issues in EAC No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
3. Reduce logistics E-commerce trading EIF Tier Two Project 490,000,000 490,000,000 E - Commerce platform costs through platform established for supporting and Strategy prepared and improved efficiency by 2025 e-Commerce in implemented and reliability Tanzania of transport infrastructure, border agencies, logistics regulators and service providers
Trade and Market ASDP II; Build 7,413,000,000 7,413,000,000 private sector participation Information Systems Sustainable An- in trade and marketing improved to final ti-corruption improved; users and media Action in Tanzania coverage increased (BSAAT)-BRELA by 50% by 2025 {Project Code:6260} & Institutional Support-TBS
4 Improve trade Up- Scale the use of Institutional 3,003,480,000 3,003,480,000 Customized Warehouse facilitation and Warehouse Receipt support-WRRB Design Automated Interface effective utilisation of System by 2025 established risk management as a tool for restricting Access to Marketing ASDP II, TAIDF 3,982,073,000 3,982,073,000 Market information systems the number of costly information upgraded physical inspections; enhanced by 2025 Strengthen trade TMEA Project, Blueprint 2,530,000,000 2,530,000,000 Business environment and marketing for Regulatory Reforms improved related, legal to Improve Business and institutional Environment; ASDP II framework
“Realising Competitiveness and Industrialisation for Human Development ” 241 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 242
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Coordinate Diversify market TMEA Project, DASP, 33,511,710,000 116755000 33,628,465,000 Improved marketing and facilitate infrastructure, ASDP II; Institutional undertakings; Test and construction of improve traceability, Support-TBS market infrastructure strategic markets at quality goods and constructed border areas; services for export by 2025
6. Promote trade Private sector ASDP II, Institutional 7,186,437,000 7,186,437,000 Domestic and Foreign Trade of domestically involvement in support-TANTRADE improved value-added goods Domestic and and services; International Markets promoted and enhanced by 2025
Participation in Institutional sup- 33,071,820,000 33,071,820,000 National and international National and port-TANTRADE exhibition conducted; International Stakeholders products sold Exhibition facilitated in exhibitions by 2025
7. Develop Tanzania Promote utilization Institutional sup- 7,135,000,000 0 900,000,000 8,035,000,000 Tanzania products identified National Brand for of Tanzania goods port-TANTRADE - internationally; Domestic Tanzanian’s products. and services by 2025 Promoting utilization products consumption of Tanzania goods and enhanced services
SUBTOTAL 99,373,520,000 116,755,000 900,000,000 100,390,275,000 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
INVESTMENT PROMOTION
1. Strengthen Investment 200,000,000 940,844,000 0 1,140,844,000 Investment Development institutional Development Strategy in place arrangement Strategy developed for investment and operationalized coordination at all by June, 2022 level Investment 150,000,000 352,816,500 0 502,816,500 Investment Monitoring, Monitoring, Control Control and Evaluation and Evaluation Framework in place Framework operational by June, 2022
2. Ensure all All sector reforms Roadmap/Blueprint 700,000,000 2,587,321,000 0 3,287,321,000 Various reforms to improve sector reforms implemented Business Enabling implemented through Roadmap Environment and Ease of through Roadmap or or Blueprint by June, Doing Business in place Blueprint recom- 2025 mendations 60 regional 1,500,000,000 - 0 1,500,000,000 At least 10 regional investment forums investment forums coordinated by June, coordinated and 2026 conducted annually
60 international 1,200,000,000 705,633,000 0 1,905,633,000 At least 12 international investment forums investment forums coordinated by June, conducted annually 2026
100 local investment 600,000,000 0 0 600,000,000 At least 15 local investment forums coordinated forums coordinated and in regions by June, conducted annually 2026
“Realising Competitiveness and Industrialisation for Human Development ” 243 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 244
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
200 national and 1,000,000,000 0 0 1,000,000,000 At least 40 national and international international investment Investment meetings meetings conducted and coordinated by June, attended annually 2026
3. Strengthen Zonal or regional 1,000,000,000 0 0 1,000,000,000 Zonal or regional One investment One Stop Centre Stop Centre to facilitate facilitation in all for investment investment established sectors of the operational by June, and operational economy 2026
ICT base for One 1,000,000,000 0 0 1,000,000,000 ICT base for One Stop Center Stop Center opera- developed and installed tionalized by June, 2022
Portal for designated 150,000,000 0 0 150,000,000 Portal for investment land Land for Investment developed and installed operationalized by June, 2022
National Investment 200,000,000 0 0 200,000,000 National Investment Statistics Database Database developed and operationalized by installed June, 2022
Five zonal plug and 9,000,000,000 117,605,500,000 0 126,605,500,000 Plug and play investment play infrastructure infrastructure established
Database for 100,000,000 0 0 100,000,000 Investors complaints investors complaints database developed and feedback in place operational and operational by June, 2022 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
4. Strengthen National wide 500,000,000 352,816,5000 0 852,816,500 National wide investment investment investment program developed and promotion in all promotion programe implemented sectors of the operational by June, economy 2022
National Investment 250,000,000 0 0 250,000,000 Investment guide prepared Guide prepared and and disseminated disseminated by June, 2022
Regional Investment 200,000,000 0 0 200,000,000 Regional Investment Guides published by Guide prepared and June, 2022 disseminated
5. Encourage utilization 186 Bankable 500,000,000 235,211,000 0 735,211,000 Bankable Investment and access of Investment Projects projects write-ups financial resources prepared by June, prepared through innovative 2023 sources
6. Enhance provision Framework for 300,000,000 235,211,000 0 535,211,000 Report on the impact of of adequate, reliable predictable incentives in place and predictable Investment investment Incentives incentives established by June, 2022
“Realising Competitiveness and Industrialisation for Human Development ” 245 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 246
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
7. Strengthening the 186 LGAs sensitized 300,000,000 1,176,055,000 0 1,476,055,000 186 LGAs sensitized on effectiveness of land to allocate land for how to allocate land for administration by investment and investment purposes empowering the developed by June, Tanzania Investment 2025 Centre (TIC) land bank, accelerate 186 LGAs 500,000,000 940,844,000 0 1,440,844,000 186 LGAs capacitated to formalization of capacitated to conduct masterplan residential and conduct masterplan and allocate land for commercial lands, and allocate land for investment purposes and reducing investment by June, land conflicts 2025 between investors and indigenous communities
SUBTOTAL 19,350,000,000 128,307,600,500 0 147,657,650,500
TOURISM
1 Promote new 5,000,000 tourists 1.Tourism 2,300,000,000 0 0 2,300,000,000 i. One (1) Convention tourism products and USD 6.0 Billion Development Centre constructed; development and Programme ii. Three (3) beach tourism diversification for areas developed; sustainable growth iii One (1) Multipurpose Cruise terminal constructed; iv. One (1) exclusive cruise terminal constructed; v. Six(6) tourism products developed; vi. 392 hotels graded; No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
viii. 100 tourism programmes aired; viii. One Presidential Meseum constructed; ix. One Dinosaurus Museum constracted
0 0 2,300,000,000 0 3,500,000,000 One International Convention Centre
2 Number of tourists 2.Resilient Natural 750,000,000 167,758,480,000 0 168,508,480,000 i. 2051 of roads, 132.5 kms in southern circuit Resources for Tourism of trails, and associated increased to 356,500 and Growth –REGROW systems constructed; Project ii. 14 air strips upgraded; iii. 80 buildings constructed; iii. Lielihoods for 20,0000 households improved; iv. Dry season water supply sources constructed in RUNAPA; v. Effective implementation of the Project
SUBTOTAL 6,550,000,000 167,758,480,000 0 174,308,480,000
TOTAL 125,273,520,000.00 296,182,835,500.00 900,000,000.00 422,356,355,500.00
“Realising Competitiveness and Industrialisation for Human Development ” 247 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 248
D. IMPLEMEMTATION MATRIX FOR HUMAN DEVELOPMENT INTERVENTIONS
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
SOCIAL PROTECTION
1 Extend social 1.4 million extreme Livelihoods 0 221,740,111,274 0 221,740,111,274 200,000 beneficiary protection coverage poor households Enhancement households supported by to both formal and targeted and (Productive Inclusion) projection completion 2023 informal sectors supported Public Works Program 0 404,532,482,581 0 404,532,482,581 837,573 beneficiaries provided with employment in 27,000 sub-projects by 2023 Materials purchased for implementation of 27,000 sub-projects by 2023
Cash Transfer Program 0 931,739,279,421 0 931,739,279,421 1.4m extreme poor and vulnerable households provided with benefits by end of project in 2023
Institutional capacity 32,410,000,000 346,389,020,000 0 378,799,020,000 Effective implementation of and delivery systems PSSN II Project by 2023
OPEC IV Program and 115,750,000,000 0 115,750,000,000 2,475 OPEC IV Program Targeted Infrastructure sub-projects implemented in Development Projects 5 Regions by 2023 and 1500 Targeted Infrastructure Development Projects sub-projects implemented in 186 PAAs by 2023
SUBTOTAL 32,410,000,000 2,020,150,893,276 2,052,560,893,276 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
GOOD GOVERNANCE
Improve governance 20% political leaders Building Sustanable 189,750,000 620,000,000 - 809,750,000 Clear Procedures for Public systems and with conflicts of Anti Corruption Action Leaders declarations and coordination of interest Tanzania (BSAAT) verification of assets and government business; Liabilities in place
NACSAP III reviewed National Anti 30,000,000 291,985,000 - 321,985,000 NACSAP IV document in and NACSAP IV Corruption Strategy place developed Action Plan (NACSAP III)
Promote good Capacity building of National Anti 16,100,000 190,850,000 - 206,950,000 Report on implementation governance and rule MDAs, RSs, and LGAs Corruption Strategy of NACSAP III of law Integrity Committee Action Plan (NACSAP III) on implementation of NACSAP III enhanced
Improve governance 5,760 project to be Building Sustanable 7,419,850,000 1,102,835,000 - 8,522,685,000 Number of Project Tracked systems and tracked, Anti Corruption Action Number of research projects coordination 15 research studies Tanzania (BSAAT) conducted of government conducted and Number of system analyses business; 3,160 system conducted analyses conducted 1,720 Workshops/ meetings conducted 1,440 follow ups conducted
Improve governance 25,920 public Building Sustanable 1,296,000,000 - - 1,296,000,000 Number of public awareness systems and awareness programs Anti Corruption Action programs prepared and coordination of conducted Tanzania (BSAAT) Conducted government business; 5,260 corruption Building Sustanable 3,456,000,000 - - 3,456,000,000 Number of cases cases investigated Anti Corruption Action investigated Tanzania (BSAAT)
SUBTOTAL 12,407,700,000 2,205,670,000 - 14,613,370,000
“Realising Competitiveness and Industrialisation for Human Development ” 249 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 250
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
PUBLIC SERVICE MANAGEMENT
1. Improve governance 185 LGAs participating PSRP 27,273,417,100 - - 27,273,417,100 Public Service delivery in 460 systems and in organizational MDAs strengthened coordination innovative rewards of government coordinated by business June,2026
Standards and 5,253,975,000 - - 5,253,975,000 redesigning procedures in 23 Ministries reviewed by June 2026
Business processes 6,129,637,500 - - 6,129,637,500 in all 3 institutions of accountability revised by June,2026
2. Implement Leadership 15,948,733,000 - - 15,948,733,000 A pool of gender based sustainable assessment and visionary future leaders leadership succession processes developed based on assessment to implemented in 460 competency assessments identify and promote MDAs by June, 2026 future leaders One Leaders’ club 10,000,000,000 - - 10,000,000,000 Completed leaders’ club in constructed in Dodoma Capital City Dodoma by June, 2026
3. One Leadership 12,711,130,000 - - 12,711,130,000 Completed center constructed in leadership Dodoma by June,2026 development center No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Strengthen Meritocratic Public 2,518,405,350 - - 2,518,405,350 Better managed HR and human resources Service Human remuneration, strengthened meritocracy services Resources processes meritocracy and ensured performed by June, right people for the right job 2026
4. Strengthen Adjusted payment 2,521,225,000 2,521,225,000 Adjusted salary levels performance based on Human incentives and Capital Management accountability Information System (HCMIS) in 460 MDAs executed by June, 2026
Guidelines and 3,225,300,000 3,225,300,000 Guidelines and institutional institutional arrangements for arrangements for appointment and promotion appointment and promotion revised by June,2026
Remuneration 1,401,060,000 1,401,060,000 Harmonized remuneration Schemes in 460 public schemes institutions harmonized and rationalized by June, 2026 5. Improve public One HR 39,023,614,000 - - 39,023,614,000 Completed HR and private sectors Management Management center service delivery processes center established in Dodoma city by June,2026
“Realising Competitiveness and Industrialisation for Human Development ” 251 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 252
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
6. Improve 15 new e-Services 17,863,515,000 17,863,515,000 Service Delivery developed and Process through operationalized by e-government June, 2026
Infrastructure for LGA 22,183,450,000 22,183,450,000 Last mile connections established by June, 2026
500,000 Citizens 198,483,500 198,483,500 transacting services via e-Government facilitated by June, 20026
31 Regional OSSCs 28,122,790,000 28,122,790,000 operationalized by June 2026
SUBTOTAL 194,374,735,450 - - 194,374,735,450
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT(PO-RALG)
1. To improve learning To construct 1,026 Secondary Education 0 744,000,000,000 0 744,000,000,000 1,026 new Secondary environment at new Secondary Quality Improvement Schools onstructed. all levels of basic Schools Programme (SEQUIP) education To construct new 0 54,000,000,000 0 54,000,000,000 New 1,800 Science 1,800 Science laboratories in Secondary laboratories Schools constructed Secondary Schools
To equip new 0 27,000,000,000 0 27,000,000,000 Newly constructed 1800 laboratories 1800 with laboratories equiped with laoratory equipments laoratory equipments No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
To construct 0 30,000,000,000 0 30,000,000,000 14,774 houses for Secondary 14,774 houses for School teachers constructed Secondary Schools teachers
To Construct 200 0 20,000,000,000 0 20,000,000,000 Construction of 200 dining dining halls in halls in Secondary Schools Secondary Schools completed
To construct 2000 0 25,000,000,000 0 25,000,000,000 New 2000 Secondary School Secondary School libraries cobstructed libraries
To construct 4,040 0 80,800,000,000 0 80,800,000,000 4,040 Classrooms for Classrooms for Secondary Schools Secondary Schools constructed
To construct 500 0 40,000,000,000 0 40,000,000,000 500 domitories constructed domitories
To construct 12250 0 13,475,000,000 0 13,475,000,000 12250 latrines constructed latrines
To instal ICT facilities 0 50,000,000,000 0 50,000,000,000 ICT facilities installed to 2000 to 2000 Secondary Secondary Schools and Schools and supplied supplied wth ICT equipment wth ICT equipment
To capacitate 0 800,000,000 0 800,000,000 10 agricultural workshops 10 agricultural and 10 technical schools workshops and 10 capacitated technical schools
“Realising Competitiveness and Industrialisation for Human Development ” 253 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 254
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
To start 450 pilot 0 13,224,701,880 0 13,224,701,880 Presence of 450 pilot classes classes for nursery and make sure children go education and make through one year nursery sure children go school school before throgh one year joining standard one nursery school before joining standard one
To prive Disabled 0 3,000,000,000 0 3,000,000,000 Disabled provided with pupils with assistive assistive and learning and learning materials materials
Water supply and Rural Water Supply and 0 677,250,000 0 677,250,000 946 Primary school in 26 sanitation, toilet Sanitation Programme Regions facilitated with construction to 946 (WASH) Water supply and sanitation Primary school in 26 and construction of tolilet Regions
2. Quality education To conduct on Secondary Education 0 25,292,000,000 0 25,292,000,000 Training conducted to 52,800 job training to Quality Improvement teachers of Mathematics and 52,800 teachers of Programme (SEQUIP) Science Mathematics and Science
600 Teacher 0 10,008,351,752 0 10,008,351,752 600 Teacher Resource Resource Centres Centres present and present and operational operational
Learning and Programu ya Usaidizi ya 0 0 197,352,000 Learning and teaching of teaching of Literacy UNICEF 197,352,000.00 Literacy and numeracy (3Rs) and numeracy (3Rs) done in all 26 Regions in 26 Regions No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Primary Education LANES 0 0 9,340,914,000 Learning and teaching of Development 9,340,914,000.00 Literacy and numeracy (3Rs) Programme - done in all 26 Regions
3. Aacces to education 8 Regions Adolescent Education 0 0 5,448,566,667 Adolescent Education & Skills to out of school age & Skills Building in 5,448,566,667.00 provided in 9 Regions chhildren TZ(IPOSA)
4. Road accessibil- mprove urban Tanzania Cities - 1,176,000,000,000 - 1,176,000,000,000 Improved capacity in urban ity(Construction Imanagement, Transforming management; Improved and Maintanance), service delivery, Infrastructure and infrastructure and services upgrading of rural business and Compettiveness and Improved business and and urban roads to investment (TACTIC) investment environment improve business environment in 45 and service delivery Municipals, Town and provide and City Councils socio economic opportunities leading Extend coverage Dar es Salaam - Inrease the coverage of to poverty reduction and quality of urban Metropolitan - 1,176,000,000,000 1,176,000,000,000 road network in Dar es Services in Ilala Development Project Salaam thereby reducing City Council and Phase 2 (DMDP II) the connectivity gap for Kinondoni, Temeke, road and reducing transport Kigamboni and costs; contributing economic Ubungo Municipal growth; adress resiliency, Council in Dar es emergency reponse and Salaam Region climate change
Extension of DaR es Salaam controllled of flood and Msimbazi drainage Metropolitan - 282,240,000,000 282,240,000,000 storm water drainage along systsem and Development Project Msimbazi river construction of Phase 2 (DMDP II) bridge
“Realising Competitiveness and Industrialisation for Human Development ” 255 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 256
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction and Support Road 1,362,500,000,000 - - 1,362,500,000,000 Urban mobility and maintainance of Maintanance and accessibility of rural transport public road network Rehabilitation and travel are improved; and in 184 LGAs Transport Safety and Security are enhanced.
5. Improved working Construction of Construction of Office 50,874,589,676.11 - - 50,874,589,676.11 Offices for 5RCs, 190 environment to offices for 5RCs, 190 Buildings DCs, 311 division officers leaders and staffs at DCs, 311 division Constructed RS and LGA level officers
Construction of Construction of 62,063,749,125.00 - - Houses for 4 RCs, 5 RASs, 16 houses for 4 RCs, 5 Government Quarters 62,063,749,125.00 DCs , 50 DASs, 311 Division RASs, 16 DCs , 50 and 95 AASs constructed DASs, 311 Division and 95 AASs
Rehabilitation of Rehabilitation of RC’s - - 51,154,580,531.25 Offices for 26 RCs, 139 DCs offices for 26 RCs, Office 51,154,580,531.25 and 259 Division Officers 139 DCs and 259 rehabilitated Division Officers
Rehabilitation of Rehabilitation of 71,313,751,687.50 - - 71,313,751,687.50 Houses for 26 RCs, 26 RASs, houses for 26 RCs, Government houses 113 AASs, 139 DCs and 89 26 RASs, 113 AASs, DASs , and 259 Division 139 DCs and 89 Officers rehabilitated DASs , and 259 Division Officers houses
Construction 100 Construction and 270,000,000,000 0 0 270,000,000,000.00 100 District Council buildings District Council Rehabilitation of constructed buildings Council building
Construction of 180 Construction and 27,000,000,000 0 0 27,000,000,000.00 180 staff houses (DED's and staff houses (DED's rehabilitation of staff HoD's) constructed and HoD's) houses No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of Construction LLG staff 407,170,000,000 0 0 407,170,000,000 Offices for 1,965 WEOs 1,965 WEO offices, offices 3,526 MEOs and 7,359 VEOs 3,526 MEO office and constructed 7,359 VEO Offices
6. Economic To provide loan 28211114: Women 144,000,000,000 0 0 144,000,000,000 Total loan total of Tshs 360, empowerment to total of Tshs group - Development 000,000,000.00 which is 10% Women, Youth 3,600,000,000.00 contribution of Own Source Revenue to and People with which is 10% be disbursed to Women disabilities of Own Source (144,000,000,000.00) , Youth Revenue for Women (144,000,000,000.00) and (144,000,000,000.00) People with disability (Tshs , Youth 72,000,000.000.00) in 184 (144,000,000,000.00) LGAs and People with disability (Tshs 28211115: Youth 144,000,000,000 144,000,000,000 72,000,000.000.00) in group - Development 184 LGAs contribution 28211116: Disabled 72,000,000,000 72,000,000,000 group - Development contribution
7. Reducing 38 Strategic 6424: Revenue 143,792,632,584 0 0 143,792,632,584 Attain revenue collection dependence of Revenue Generating Generating Projects. of 3.6 trillion, Some LGAs to LGAs on funds from Projects that are meet Central Government implemented in 30 LGAs.
8. To improve in- 26 RSs and 49 MDAs Regional and 83,192,103,000 82,602,643,000 0 165,794,746,000 Promote small and medium dustrialization Local Government scale industrialisation and business Authorities through improving value environment Streghening Program- addition in local pro- me(RLGSP) duces(agriculture, livestock, fisheries, forestry etc)
“Realising Competitiveness and Industrialisation for Human Development ” 257 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 258
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of 163 Blue Print 8,150,000,000 0 0 8,150,000,000 163 Construction Business One Business Stop Stop Centres Centres
9. Revenue 3.6 trillion collected (code) PFMRPV 0 3,946,319,000 0 3,946,319,000 50 revenue mobilization, enhancement/ by 2026 expenditure and revenue mobilization procurement Acts, guidelines and procedures are adhered
10. Improve primary 26 RSs and 184 LGAs 5421:Health sector 0 558,543,566,435 0 558,543,566,435 Reaching all households health care Basket Fund with quality Health care services
26 RSs and 184 LGAs 5493:Global Fund 0 0 40,250,049,644 Reduced disease burden 40,250,049,644 of HIV, TB and Malaria and Increased number of Health centres and Dispensaries renovted and equiped;Number of TB DOT centres constructed
26 RSs and 184 LGAs 4305:UNICEF 0 20,059,596,364 0 20,059,596,364 Reduce stunting and violence agaist women and children
17 2RSs and 86 LGAs 3201:Rural Water 0 93,135,157,695 0 93,135,157,695 Construction of water Supply, Sanitation & supply infrastructures and Hygiene (SRWSS) construction of toilets and hand wash facilities in health facilities
2RSs and 6 LGAs 5437:Strengthening 0 5,756,397,295 0 5,756,397,295 Reducce of maternal and Health Systems newborn mortality rates in the country; Increased number of Health centres and Dispensaries renovted and equiped in 6 LGAs No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
26 RSs and 184 LGAs ( CODE): Tanzania 0 218,080,000,000 218,080,000,000 Number ofDistrict reproductive maternal, reahabilitated and equiped neo natal child and Number of Health centres adolescent health upgraded and equiped investment project (Investing in People)
11. Monitoring and 26 RSs and RLGSP 600,000,000 0 0 600,000,000 Purchased 3 vehicles for Cordination of Rs 184 Ministries, programme management and LGAs Departiments and Agencies
RLGSP 1,000,000,000 0 0 1,000,000,000 RCs, RASs, DCs, DAs, Councillors and Village/Mitaa Chairperson trained in their areas of juridistiction.
RLGSP 1,200,000,000 0 0 1,200,000,000 To establish 5 iinnovation and Investiment support centres in 5LGAs
26 Regions and 184 RLGSP 4,700,000,000 0 0 4,700,000,000 implementation of Decen- LGAs tralization by DevolutionPol- icy in 26RS and 184 LGAs coordinated
15 LGAs in MDAs 5308 Decetralizing 0 714,725,000 0 714,725,000 Training on Climate Change Climate Financing adaptation and Mitigation Project conducted in 15 LGA
1,000,000,000 0 1,000,000,000 Environmental conservation practices supported in 15 LGAs
154 LGAs 4486 Agricultural 1,000,000,000 0 0 1,000,000,000 154 LGAs trained on how to Sector Development develop District Agricultural Programe (ASDP) development Plans (DADPs)
“Realising Competitiveness and Industrialisation for Human Development ” 259 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 260
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
1,191,500,000 0 0 1,191,500,000 154 LGAs supported in terms of technical backstoping and follow up (DADPs)
2,000,000,000 0 0 2,000,000,000 Implemented ASDP2 in accordance to Plan
Services Delivery 4305: UNICEF Support 0 1,190,000,000 0 1,190,000,000 To provide techinical at RSs and LGAs Programme backstoping ,Monitoring and improved 4 Rs and Evaluation of programmes 8 LGAs implemented in LGAs under UNICEF support
Conducting Monitoring and 5,000,000,000 Proper implentation of Monitoring and Evaluation 5,000,000,000.00 Projects and Programs to Evaluation of Projects realise value for money and Programmes
Cordinating Plans for Cordination of Plans 1,000,000,000 Timely and accurately 26 Rs and 184 LGAs 1,000,000,000.00 preparation of Plans and budget inline with the budget guidelines
SUBTOTAL 3,032,508,406,604 5,587,975,590,732 - 8,620,483,997,336 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
ENVIRONMENT AND UNION MATTER
1. Promote Program for up-scaling Ecosystem Based 600,000,000.00 150,000,000.00 - 750,000,000.00 National Climate Change afforestation, the use of alternative Adaptation for Rural Strategy (2012) reviewed and renewable green sources of energy which Resilience (EBARR) in implemented. energy technologies are readily accessible Tanzania Project (biogas, LPG, Solar and affordable to Energy) public developed and implemented by June, 2026
To continue with - - 9,126,592,373.00 Ecosystem Based Adaptation implementation of 9,126,592,373.00 for Rural Resilience (EBARR) Ecosystem Based Project implemented Adaptation for Rural Resilience (EBARR) in Tanzania Project
To implement - 675,476,873.00 - 675,476,873.00 A pilot project for Adaptation Adaptation to to Climate Change in Lake Climate Change Victoria Basin implemented Pilot Project in Lake Victoria Basin
2. Reduce Deterioration Strategy for Conservation of Ocean, 3,300,000,000.00 0 0 3,300,000,000.00 5 awareness programmes of Aquatic System Conservation of Lakes, Rivers and Dams on Conservation of Ocean, Ocean, Lakes, Lakes, Rivers and Dams Rivers and Dams implemented. implemented, monitored and evaluated by June, 2026
“Realising Competitiveness and Industrialisation for Human Development ” 261 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 262
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
3. Biodiversity Five (5) aquatic Biodiversity 300,000,000.00 300,000,000.00 5 aquatic ecologically Conservation ecologically sensitive conservation sensitive areas identified, areas to be gazette gazetted and protected. as protected areas by June, 2026
National Biodiversity National Biodiversity 3,000,000,000.00 12,000,000,000.00 0 15,000,000,000.00 National Biodiversity Strategy Strategy and Action Strategy and Action and Action Plan (2015 -2020) Plan (2015 -2020) Plan (2015 -2020) reviewed and implemented by June, 2026
Strategies for National Invasive 4,062,000,000.00 16,584,000,000.00 0 20,646,600,000.00 National Invasive Species addressing Species Strategy and Strategy and Action Plan – Invasive Species Action Plan – 2019 2019 -2029 implemented implemented and -2029 monitored by June, 2026
Research The National Biosafety 300,000,000.00 600,000,000.00 0 900,000,000.00 National Biosafety programmes on Project Framework, Regulations and the development Guidelines implemented and of modern monitored biotechnology products monitored by June, 2026 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
4. Safe use and 25 awareness Programmes for raising 150,000,000.00 300,000,000.00 0 450,000,000.00 25 programmes for raising handling modern programmes on the public awareness public awareness on biotechnology safe use of modern on handling and handling and safe use of biotechnology safe use of modern modern biotechnology conducted by June, biotechnology. prepared and implemented. 2026
Programme Programme 300,000,000.00 0 0 300,000,000.00 Programme for valuation of for valuation for valuation of biodiversity and integrate of biodiversity biodiversity into national strategies developed and and plans developed and integrated into implemented. national strategies and plans by June, 2026
Environmental Environmental Strategy 600,000,000.00 120,000,000.00 0 720,000,000.00 Environmental strategy for strategy for for Sustainable Blue sustainable Blue Economy Sustainable Blue Economy developed, implemented Economy developed, and monitored. implemented and monitored by June, 2026
5. Climate Change National Climate National Climate 600,000,000.00 150,000,000.00 0 750,000,000.00 National Climate Change Adaptation and Change Strategy Change Strategy (2012) Strategy (2012) reviewed and Impacts Mitigation (2012) reviewed and implemented. Measures implemented by June 2026 Ecosystem Based 0 9.126,592,373.00 0 9,126,592,373.00 Ecosystem Based Adaptation Adaptation for Rural for Rural Resilience (EBARR) Resilience (EBARR) in Project implemented Tanzania Project A pilot project for Adaptation to Climate Change in Lake Victoria Basin implemented
“Realising Competitiveness and Industrialisation for Human Development ” 263 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 264
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Develop and 600,000,000.00 15,000,000,000.00 0 15,600,000,000.00 Five (5) projects to implement five (5) address climate change projects to address challenges developed and climate change implemented challenges
25 awareness 25 Awareness 300,000,000.00 0 0 300,000,000.00 25 awareness programmes on Programmes on programmes on climate climate change Climate Change change adaptation and adaptation and adaptation and mitigation developed and mitigation conducted mitigation implemented. by June, 2026
REDD+II Strategy REDD+II Project 1,440,000,000.00 0 0 1,440,000,000.00 The National Strategy implemented and for Reducing Emission monitored by June, from Forest Degradation 2026 and Deforestation (REDD+) coordinated and implemented.
Strategic Support to 0 1,440,000,000.00 0 1,440,000,000.00 Project for Strategic Support Tanzania to become to Tanzania to become REDD+ Ready by 2022 REDD+ Ready by 2022 (SSTRR) Project
National Adaptation National Adaptation 3,342,700,000.00 184,433,280,000.00 120,000,000,000 307,775,980,000.00 National Adaptation Plan Plan (NAP) Plan (NAP) (NAP) developed and implemented and implemented monitored by June, 2026
Nationally Determined Nationally Determined 600,000,000.00 15,000,000,000.00 0 15,6000,000,000.00 Nationally Determined Contributions (NDCs) Contributions (NDCs) Contributions (NDCs) to to address climate address climate change change implemented implemented and monitored by June, 2026 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Project for National 600,000,000.00 3,000,000,000.00 0 3,600,000,000.00 Project for preparation of preparation Communication on the 3rd Report of National of National Climate Change Communication on Climate Communication on Change implemented and Climate Change the report prepared
Project for preparation of Bi- annual update report on Climate implemented and the report prepared
6. Reduced Land National Strategy on National Strategy on 3,000,000,000.00 0 0 3,000,000,000.00 National Strategy on Land Degradation Land Degradation Land Degradation and Degradation and Water and Water Water Catchments Catchments (2019 -2024) Catchments (2019 (2019 -2024) implemented -2024) implemented and monitored by June, 2026
Reversing Land Reversing Land 7,910,451,820.00 0 0 7,910,451,820.00 Project on Reversing Land degradation Trend degradation Trend and degradation Trend and and Increase Food Increase Food Security Increase Food Security in Security in Degraded in Degraded Ecosystem Degraded Ecosystem in Ecosystem in in Semi-Arid Areas in Semi-Arid Areas in Tanzania Semi-Arid Areas in Tanzania implemented Tanzania
3 projects on Sustainable Land Use 180,000,000.00 9,000,000,000.00 0 9,180,000,000.00 Three (3) projects on sustainable land use Management. sustainable land use management. management developed and implemented.
3 projects on Sustainable Land Use 600,000,000.00 0 0 600,000,000.00 20 awareness programmes sustainable land use Management. on sustainable land use management. management prepared and implemented
“Realising Competitiveness and Industrialisation for Human Development ” 265 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 266
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
20 awareness 150 Million trees 3,000,000,000.00 120,000,000.00 300,000,000.00 3,420,000,000.00 National Tree Planting programmes on planted annually by Campaign of planting sustainable land use each LGAs monitored 1.5m trees in every district management by June, 2026 annually implemented and monitored.
To implement the Green Dodoma 100,000,000.00 200,000,000.00 0 300,000,000.00 The Green Dodoma Initiative Green Dodoma Initiative implemented and monitored Initiative by June, 2026
National National 3,000,000,000.00 0 0 3,000,000,000.00 National Environmental Environmental Environmental Action Action Plan (2020-2025) Action Plan (2013 Plan (2013 -2018) implemented and monitored -2018)
Compendium of Compendium of 150,000,000.00 0 0 150,000,000.00 Sustainable Land Sustainable Land Sustainable Land Management Best Practices Management Best Management Best promoted. Practices (2014) Practices (2014)
Compendium of National Action Plan to 1,500,000,000.00 0 0 1,500,000,000.00 National Action Plan to Sustainable Land Combat Desertification Combat Desertification Management Best (NAP) 2014 -2018 (NAP) 2014 -2018 reviewed Practices (2014) and implemented
Land Degradation Land Degradation 1,500,000,000.00 120,000,000.00 0 1,62,000,000.00 Land Degradation Neutrality Neutrality Target Neutrality Target Target Sets (2018 -2030) Setting (2018 -2030) Setting (2018 -2030) implemented
National Drought National Drought Plan 1,500,000,000.00 120,000,000.00 0 1,620,000,000.00 National Drought Plan Plan (2020 -2030) (2020 -2030) (2020 -2030 prepared and implemented and implemented monitored by June, 2026 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
7. Minimize National Strategy for National Strategy for - - Regulations on waste environmental sound management sound management 600,000,000.00 600,000,000.00 management including pollution and of chemicals and of chemicals and e-waste, Hazardous waste, resultant adverse Hazardous waste Hazardous waste solid waste, plastic waste effects on the implemented and (2020-2025) and Mercury implemented environment and monitored by June, and enforced. human health; 2026
Promotion of BAT 144,728,120 0 0 144,728,120 Project for Promotion of and BEP to reduce BAT and BEP to reduce POPs POPs release from release from waste open waste open burning burning in participating in participating African Countries of SADC African Countries sub-region implemented. of SADC sub-region project
Comprehensive Comprehensive 3,250,000,000 0 0 3,250,000,000 A Comprehensive National National Waste National Waste Waste Management Management Management Strategy Strategy developed and Strategy developed implemented and implemented by June, 2026
To enforce - Compliance to Plastic Waste compliance to Plastic 150,000,000.00 - 150,000,000.00 and Mercury Regulations Waste and, Mercury enforced Regulations
National Action National Action Plan 500,000,000 369,440,000 0 869,440,000 National Action Plan for Plan for Artisanal for Artisanal and Artisanal and small-scale and small scale gold small-scale gold mining gold mining (2020- 2025) mining implemented (2020- 2025) implemented. by June, 2026
“Realising Competitiveness and Industrialisation for Human Development ” 267 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 268
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
8. Enforce Environment Compliance of Compliance of 3,000,000,000.00 0 0 3,000,000,000.00 Enforcement and Management Act Environmental Environmental compliance of 2004 Management Act Management Act of Environmental Management of 2004 in industrial 2004 in industrial and Act of 2004 in industrial and mining mining monitored by and mining activities monitored by June, June, 2026 strengthened develop 2026 and implement National Guideline for Solid Waste Management through Reduce, Reuse and Recycle (2020) developed and implemented
Enforce EIA and - - EIA and Audit Regulations Audit Regulations 30,000,000.00 30,000,000.00 (2005) as amended 2018 (2005) as amended implemented and monitored 2018
To implement - Strategic Environmental Strategic 600,000,000.00 - 600,000,000.00 Assessment Regulations Environmental 2008 implemented and Assessment monitored Regulations 2008
Guideline for Solid National Guideline - Guideline for Solid Waste Waste Management for Solid Waste 300,000,000.00 - 300,000,000.00 Management Through Through Reduce, Management Through Reduce, Reuse and Recycle Reuse and Recycle Reduce, Reuse and (2020) implemented and (2020) implemented Recycle (2020) monitored and monitored by June, 2026 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
National National 600,000,000.00 52,645,200.00 0 652,645,200.00 National Implementation Implementation Implementation Planform Stockholm Convention Plan for Stockholm Plan for Stockholm 2019- 2024 implemented Convention (2019- Convention 2019- 2024 2024) implemented and monitored by June, 2026
National Minamata Convention 600,000,000.00 12,000,000.00 0 612,000,000.00 National Implementation Implementation on control of Mercury Plan for Minamata Plan form Minamata chemicals Convention developed and Convention developed implemented and implemented by June, 2026
9. Improved Environmental Institutional Capacity 2,712,000,000.00 0 4,156,2000,000.00 6,868,200,000.00 Institutional capacity for Institutional Management in Building Project for Implementation of the coordination 186 LGAs and 13 Implementation of Environmental Management Sector Ministries EMA, 2004 Act 2004 built. coordinated and Guideline for stakeholders Strengthened by involvement in June 2026 environmental conservation and protection developed and implemented
SUBTOTAL 54,871,879,940.00 277,700,026,819.00 161,862,000,000.00 494,433,906,759.00
“Realising Competitiveness and Industrialisation for Human Development ” 269 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 270
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
COMMUNITY DEVELOPMENT
1. Strengthen 200 children placed Support to social 0 1,000,000,000 0 1,000,000,000 Most Vulnerable Children alternative care, under foster care welfare services living with Foster Parents and including foster provided with basic services parenting and such as food, clothing, adoption services shelter and education.
60 children adopted Support to social 0 250,000,000 0 250,000,000 Adopted children welfare services
Number of children Support to social 200,000,000 2,150,300,000 0 2,350,300,000 Most Vulnerable Children placed under fit welfare services provided with basic persons to reach services 1,189
2. Strengthen 184 Councils Resource Planning for 500,000,000 3,000,000,000 0 3,500,000,000 Community awareness on efforts against reached by Gender Gender Based Violence in gender-based Ant-Gender Based 184 Councils. violence and Violence campaign violence against children Number of Established Gender and established Police Children Desks at Police Gender and Children Stations Desks to reach 455
Number of Established One Stop established One Centres for GBV Victims Stop Centres for GBV Victims to reach 23
50% of decision Women in decision making making positions positions held by women No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Number of Community Development motorcycles Officers (CDOs) and Social provided to CDOs Welfare Officers (SWO) and SWO in Councils provided with motorcycles to reach 179
4,000 women Development 200,000,000 2,500,000,000 0 2,700,000,000 Trained Women in Poultry, Integration Program on Dairy Products and Women Horticulture
30,000 women Women Economic 5,000,000,000 0 0 5,000,000,000 Women entrepreneurs provided with soft Empowerment project provided with soft loans loans
Number of Child Survival and 0 3,000,000,000 0 3,000,000,000 Women and Children Women and Development Protection Committees at all Children Protection levels. Committees at all levels to reach 30,000
Number of children Children victims of violence victims of violence who get referral services who get referral through Child Helpline services through Service (116) Child Helpline Service (116) to reach 12,000
Number of Child Established Child Protection Protection Desks Desks at primary and established at secondary schools primary and secondary schools to reach 1,182
“Realising Competitiveness and Industrialisation for Human Development ” 271 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 272
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5000 Child Child Survival and 0 2,500,000,000 0 2,500,000,000 Child protection service Protection service Development providers at LGAs with providers in 184 positive parenting skills LGAs provided with positive parenting education
Number of parenting Established Parenting Groups groups established at community level at community level to reach 11,663
Number of Junior Child Survival and 500,000,000 0 500,000,000 Established Junior Councils Councils established Development to reach 1,919
2,000,000 National Accelerated 500,000,000 3,500,000,000 4,000,000,000 Trained Adolescent on adolescents trained Action and Investment Health and well being in on Health and well Agenda for Adolescent place being. Health and wellbeing (NAIA)
3. Strengthen Number of Support to Social 550,000,000 550,000,000 Registered Day Care Centres Early Childhood Registered Day Care Welfare Services Development Centres to reach services and child 2,427 protection Number of Registered Crèches Registered Crèches to reach 43
Number of Registered Children Home Registered Children Homes to reach 49 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
1,000,000 children Enrolled Children in Day Care enrolled in Day Care Centres Centres
25,000 reconciled Children of parents with children matrimonial conflicts get maintenance cases their basic rights
Number of Child Survival and 1,000,000,000 0 1,000,000,000 Established Communi- established Com- Development ty-Based ECD Centres munity-Based ECD Centres to reach 180
400 Children in Support to Social 0 1,000,000,000 0 1,000,000,000 Children in conflict with law Conflict with Law Welfare Services diverted from formal leal diverted from formal system legal system
2 Retention Homes Support to Social 3,000,000,000 2,000,000,000 0 5,000,000,000 Constructed and and one Approved Welfare Services rehabilitated Retention School built, 5 Homes, Approved School Retention Homes and Children Homes rehabilitated
4.. Strengthen provision 5,000 Social Support to Social 0 950,000,000 0 950,000,000 Social Protection service of social welfare Protection service Welfare Services providers in LGAs with services including providers in in 184 psychosocial care support health services and LGAs trained on skill psychosocial support psychosocial care to vulnerable groups support and communities 11,000 students Support to Social 5,000,000,000 0 0 5,000,000,000 Graduates with Social Work enrolled at Institute Welfare Services skills of Social Work
“Realising Competitiveness and Industrialisation for Human Development ” 273 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 274
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Strengthen Elderly 13 Elderly Homes Support to Social 2,000,000,000 2000,000,000 4,000,000,000 Improved living environment Councils and rehabilitated Welfare Services in Elderly Homes accessibility of essential services to elders
Number of Support to Social 500,000,000 0 500,000,000 Functional Elderly Councils established Elderly Welfare Services Councils to reach 17,383
Number of destitute Support to Social 500,000,000 0 500,000,000 Identified Destitute Elders elders provided with Welfare Services provided with Health health insurances Insurance Cards cards for free medical services to reach 1,356,052
6.. Strengthen the 10,000 students Rehabilitation 4,000,000,000 0 0 4,000,000,000 Graduates with Community community enrolled at of Community Empowerment Skills empowerment Tengeru Institute Development Training and private sector of Community Institutes (CDTIs) development Development (TICD) initiatives
20,000 students Rehabilitation 6,000,000,000 0 0 4,000,000,000 Graduates with Community enrolled at 8 of Community Empowerment Skills Community Development Training Development Institutes (CDTIs) Training Institutes.
SUBTOTAL 26,950,000,000 26,350,300,000 0 53,300,300,000 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
HEALTH
1. Construct and 18 Regional Referral Strengthening of 100,000,000,000 0 0 100,000,000,000 18 Regional Referral rehabilitate health Hospitals (RRH) Referral Hospitals Hospitals (RRH) and 3 zonal facilities and three (3) zonal hospitals constructed Hospitals
2. Employ health Number of Health Human Resources 89,416,033,236 0 0 89,416,033,236 Vacancy rate reduced professionals, Workforces from Development working 103,469 to 117,469 (Recruitment of health environment, and Workforces workers) ensure professional ethics are adhered Health Work Forces Human Resources 26,000,000,000 0 44,400,200,000 70,400,200,000 Teaching facilities increased Production from Development (To 27,077 to 28,837 provide teaching workers facilities at health training institutions)
3. Ensure availability Medicine availability Strengthening of 30,000,000 600,000,000 0 630,000,000 Medicine availability for 312 of medicine, for 312 tracer items Referral Hospital tracer items reached 94% medical supplies, to be 94% that can that can save six months reagents, vaccine save six months need and pharmaceutical need equipment
4. Promote and increase enrolment Health Plans and 400,000,000 0 0 400,000,000 e Enrolment increased increase scope, as from 33% to 50% of Management and awareness of Health well as coverage of the population in Insurance raised health insurance Tanzania Mainland schemes
“Realising Competitiveness and Industrialisation for Human Development ” 275 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 276
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Strengthen Reduced from 40 Strengthening 60,000,000 200,000,000 0 260,000,000 Equipment for specialized specialized and patients to less than Specialized and Super and super-specialized super-specialized 20 patients to be specialized services purchased services in all zonal, referred abroad by specialized and 2025 national referral hospitals 100% of Hospitals at Strengthening 30,000,000 10,000,000 0 40,000,000 Super specialized Health National and Zonal Specialized and Super workers trained level to provide specialized services super specialized services by 2025
6. Improve traditional A comprehensive Strengthening of 17,929,320,000 0 0 17,929,320,000 At least 12-15 ethnic groups health services/ research on Referral Hospital comprehensively researched alternative medicines traditional medicine on traditional medicine in to 12-15 ethnic order to generate enough groups (10-12.5%) evidence from traditional conducted in order health practitioners about to generate enough their indigenous way of evidence from managing disease traditional health practitioners about their indigenous way of managing disease
45000 (60%) Improve provision 22,744,490,000 0 0 22,744,490,000 Traditional medicine Traditional health of traditional and sensitization regarding legal practitioners alternative medicine framework and registration sensitized regarding services procedures carried out legal framework and registration procedures No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
comprehensive Strengthen institutional 39,359,860,768 0 0 39,359,860,768 Institutional capacity for (100%) supervisory capacity for developing, promoting, role to research developing, promoting, supervising and controlling institutions, supervising and traditional and alternative manufacturing firms, controlling traditional medicine and their practices region and council medicine and its in the country strengthened. levels carried out practices in the country
7. Promote and support 50% or less health Local production of 70,100,000,000 20,000,000 0 70,120,000,000 Public human vaccine plant establishment of commodities health commodities established vaccines, medicines imported and medical equipment manufacturing industries
8. Promote and three Prime vendor Strengthening of 0 0 0 0 Improved availability of support private each region Referral Hospital health commodities at SDP sector investment in health commodity supply chain;
9. Design and establish 6000 SDP with Strengthening of 50,000,000,000 800,000,000 0 50,800,000,000 improved storage facilities proper logistics and conducive storage Referral Hospital storage of medical facility commodities 12 MSD zonal offices 0 20,000,000,000 0 20,000,000,000 Four warehouse in a box with sales point constructed in Ruvuma and Simiyu
10. Educate the from 60% to 80% Control of 0 1,000,000,000,000 0 1,000,000,000,000 Case detected; community for Communicable Disease Awareness Created and precaution measures knowledge Enhanced and early detection on infectious disease control
“Realising Competitiveness and Industrialisation for Human Development ” 277 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 278
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
11. Educate the community From 40% to 60% Control of Non-Com- 600,000,000,000 0 0 600,000,000,000 Case detected; precaution measures municable Disease Awareness Created and and early detection knowledge Enhanced. on Non-Communi- cable Disease
12. Strengthen public 150 Public health Strengthening multi 3,000,000,000 0 0 3,000,000,000 EOC strengthened and health rapid response teams sectoral coordination established in 16 regions response teams established at National and response to public as well as regional health events at all levels on all regions levels
13. Improve Emergency Establishment Emergency Medical 50,000,000,000.00 0 0 50,000,000,000 Emergency Medical Services Medical Services of Multi Hazard and Rescue Services (EMS) establishment in in 9 (EMS) ambulance and regions; Morogoro – Dodoma rescue services for – Singida -Tabora (Nzega optimal emergency and Igunga), Shinyanga care in 9 regions -Mwanza and Tanga (Chalinze along the major - Mombo), Iringa Mbeya highway (Tunduma - Kyela).
SUBTOTAL 1,119,069,704,004 1,021,630,000,000 44,400,200,000 2,185,099,904,004 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
EDUCATION
BASIC EDUCATION
1. Strengthened access Primary PCR 1:50; SEQUIP 323,827,320,000 379,989,420,177 0 705,791,740,177 Guidelines for school and quality basic Secondary PCR 1:40 infrastructure development education in use.
2. Improve Literacy 80% LANES II, Children in 2,128,000,000 3,260,000,000 0 5,388,000,000 No. of Circulars and guidelines skills in Early Grades Crossfire; UNICEF on literacy developed, updated and in use.
3. Train Pre service and Pre-Service Teachers ESPJ; TESP; EP4R; 14,900,000,000 12,033,086,320 0 26,933,086,320 19,000-pre service and Inservice teachers for 19,000and In-Service UNESCO 6,013 in-service teachers Science, Mathematics, Teachers6,013 for Science, Mathematics, Agriculture, Technical, Agriculture, Technical, Vocational Studies, Vocational Studies, Social Social Science, Science, Language and Language and Commercial subjects trained. Commercial subjects
4. Improve ICT 75% ESPJ 6,261,680 6,261,680,000 0 6,267,941,680 No. of teacher’s colleges integration in connected with the national teachers’ colleges optic fibre
5. Improve Teaching 100% SEQUIP,TESP 330,000,000 0 330,000,000 Kupitiwa na Kusambazwa and learning of kwa Nyaraka na Muongozo Physical Education kuhusu maendeleo ya elimu in secondary schools ya viungo. and teachers’ colleges 95% LANES; EP4R; SEQUIP 5,000,000,000 0 5,000,000,000 Kuhuisha kwa Nyenzo na muongozo wa uthibiti ubora
50% Project Concern 520,000,000 0 520,000,000 kusambazwa kwa muongozo International (PCI) ya lishe na afya shuleni
“Realising Competitiveness and Industrialisation for Human Development ” 279 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 280
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
6. Collaborate with the 95% LANES; EP4R; SEQUIP 0 850,000,000 0 850,000,000 No. of circulars developed private sector, civil and disseminated society organizations including religious 5,000,000,000 0 5,000,000,000 SQA guidelines and tools institutions in reviewed and in use. increasing access to education and skills
7. Improve working 150 LANES; EP4R; SEQUIP 1,893,000,000 0 1,893,000,000 (i) No. of vehicles for district environment for and zonal QA offices teaching staff at procured and distributed; No. of ICT facilities and equipment for district and zonal SQA offices procured and distributed; and
SUBTOTAL 340,855,320,000 406,350,726,497 0 747,206,046,497
HIGHER LEARNING
1. Improve availability 890 Higher Education 0 18,000,000,000 0 18,000,000,000 No. of Academic staff, of academic for Economic laboratory technicians, staff, laboratory Transformation (HEET) workshop technicians and technicians, librarians employed workshop technicians and librarians
2. Improve teachers’ 1,299 HEET 0 500,000,000 0 500,000,000 Increased number of competency at all lecturers with Master’s levels, particularly degrees and PhDs in 15 in Mathematics and Public Universities Science subjects No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
430 Improve teaching and learning methods and expanded use of advanced ICT in teaching and learning in 15 Public Universities
3. Improve and 0 10,000,000,000 0 10,000,000,000 No. of T/L resources procured incorporate inclusive teaching 0 0 0 0 No. of T/L material and learning maintained and repaired environment 50% 7,762,500,000 2,000,000,000 0 9,762,500,000 Percentage of University (classrooms, desks, infrastructure constructed text books, latrines/ toilets ratios; 100,912,500,000 0 0 100,912,500,000 boarding for girls; etc.) at all levels; 14 0 16,500,000,000 0 16,500,000,000 No. of lectures theaters, lectures rooms laboratories and workshops in 14 public universities rehabilitated
7,762,500,000 2,000,000,000 0 9,762,500,000
4. Review and 290 HEET 0 5,000,000,000 0 5,000,000,000 No. of of existing curricula Updating curriculum reviewed in 15 Public with alignment to Universities labour market 144 No. of new curricula developed
5. Strengthen national, 85% HEET 500,225,220,000 37,000,600,000 0 537,225,820,000 regional and international scientific and technical cooperation in education at all levels;
“Realising Competitiveness and Industrialisation for Human Development ” 281 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 282
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
6. Increase access to 2,300 students heet 2,587,500,000,000 300,000,000 0 2,587,800,000,000 Improved Loan student loans at provided with the disbursement and recovery Higher Education services systems especially for those in Science, Mathematics, special and rare cadre courses
7. Improve Guidance EJMU 900,000,000 900,000,000 Availability of guidelines for and Counselling guidance and counselling Services to Students
SUBTOTAL 3,204,162,720,000.00 92,200,600,000.00 - 3,296,363,320,000
PEACE AND SECURITY
1. Enhance public Procurement of 21 Expansions of Fire and 23,600,000,000 23,600,000,000 21Rescue Vehicles added by safety, law and order; Rescue Vehicles in Rescue services June 2026 the Country by June 2026
Procurement of Fire 5,000,000,000 5,000,000,000 10 Ambulances added by 10 Ambulances in June 2026 the Country by June 2026
Construction of 50 50,000,000,000 50,000,000,000 50 Fires Stations added by Fires Stations in the June 2026 Country by June 2026
Procurement of 10 6,000,000,000 6,000,000,000 10 staffs and 8 classrooms staff houses and 8 added by June 2026 classrooms in the Country by 2026. No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Procurement of 111 60,000,000,000 60,000,000,000 111 residential houses added residential houses in by June 2026 the Country by June 2026
Capacity Building to Police Services 30,000,000,000 30,000,000,000 25,000 capacitated by June 25,000 conducted in Development 2026 the Country by June Programme 2026
Construction of 160,000,000,000 160,000,000,000 Construction of 2,000 2,000 residential residential houses and 35 House and 35 Police Police stations constructed Stations in the by June 2026 Country by June 2026
Procurement of 500,000,000,000 500,000,000,000 2000 Facilities added by June 2000 new transport 2026 facilities in the Country by June 2026
Construction of 5 Prisons Services 20,000,000,000 20,000,000,000 5 Vocational training Vocational Training Development increased by June 2026 colleges in the Programme Country by June 2026
Construction of 7 20,000,000,000 20,000,000,000 7 Industries increased by New Industries for June 2026 increasing export-led industrial productions on Leather goods, sugar, cooking oil and foodstuff in the Country by June 2026
“Realising Competitiveness and Industrialisation for Human Development ” 283 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 284
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of 120,000,000,000 120,000,000,000 3 Factories added by June 3 New Factories 2026 for increasing export-led industrial productions on Leather goods, sugar, cooking oil and foodstuff in the Country by June 2026
Construction of 3 30,000,000,000 30,000,000,000 3 Irrigations Schemes by Irrigation Schemes in June 2026 the Country by June 2026
Construction of 49 250,000,000,000 250,000,000,000 49 New District Prisons New District Prisons added by June 2026 in the Country by June 2026
Recruitment of Human capital 450,000,000,000 450,000,000,000 10,000 New prisons staff Human Capital investment programme recruited by June 2026 Personnel through its vocational training colleges (Ruanda Trade school, Kingolwira Prisons Farm Driving School and Wami Vijana Young Offenders Prison). in the Country by June No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2. Improve Registration of 100,000,000,000 100,000,000,000 10,986,966 people added identification New ID cards FOR and registered with ID Cards and registration 10,986,966 people by June 2026 of citizens and non-citizens and Connection/ 4,000,000,000 4,000,000,000 160 institutions added by e-immigration integration of 160 June 2026 services; institutions into National ID Database
Provision of Immigration services 30,000,000,000 30,000,000,000 Residence permits (class A: Residence Permits development 1,972 and B: 7,506) added to to investors in the programme the system by June 2026 Country by June 2026
Provision of 30,000,000,000 30,000,000,000 • Passport from 150,424 Residence Permits • Residence permits 20,089 to foreigners • Visa 427,270 added by June in improving 2026 coordination and delivering of its services, this will improve qualities of services delivered to the foreigners.by June 2026
Provision of 30,000,000,000 30,000,000,000 Increased Issuance of Residence Permits Immigration services and Visa for (Passports, Residence Tanzanians who Permits, Business Visa and export goods and Business Passes) 274,514 services abroad by Increased number of June 2026 Immigration service’s 170,513 added by June 2026
“Realising Competitiveness and Industrialisation for Human Development ” 285 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 286
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Construction of 60,000,000,000 60,000,000,000 Construction of 131 Immigration Offices Immigration Offices, 2,649 and Houses by June residential houses constructed 2026 and 50 residential building rehabilitated added by June 2026
3 Immigration 30,000,000,000 30,000,000,000 3 Immigration Academy Academy constructed by June 2026 constructed by June 2026
Procurement of 500 40,000,000,000 40,000,000,000 500 motor vehicles, 600 motor vehicles, 600 motorcycles and 13 patrol motorcycles and 13 boats added by June 2026 patrol boats for ISD in the country by June 2026
3. Develop an effective 2500 men recruited Security forces Capacity 10,000,000,000 10,000,000,000 new 2500 men recruited and coordination, and 2050 trained Building programme 2050 trained by June 2026 collaboration and on job Training and information sharing recruiting new fire men system among for improving their law enforcement performance in the agencies; and Country by June 2026
20,000 new police 150,000,000,000 150,000,000,000 new 20,000 new police officers recruited in officers recruited by June the Country by June 2026 2026
Recruitment of 30,000,000,000 30,000,000,000 • 16,212 new Immigration Human Capital Officers recruited by June Personnel in the 2026 Country by June 2026 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
4. Institute crime To reduce the 150,000,000,000 150,000,000,000 5% decreased by June 2026 record management crime by 30% in the and coordination country and record system. keeping by June 2026
SUBTOTAL 2,388,600,000,000 0 0 2,388,600,000,000
CONSTITUTION AND LEGAL AFFAIRS
1. Strengthening 1 Construction of 129,000,000,000 - - 129,000,000,000 Improved access to court legal systems and Judiciary HQ Building services infrastructure 18 Construction of - 93,600,000,000 - 93,600,000,000 Improved access to court Integrated Justice services, Increased citizen Centres satisfaction on Judiciary services, reduces travelling time and cost for litigants,
75 Construction District - 75,937,500,000 - 75,937,500,000 Improved access to court Court buildings services, Increased citizen satisfaction on Judiciary services, reduces travelling time and cost for litigants,
142 Construction Primary - 105,435,000,000 - 105,435,000,000 Improved access to court Court buildings services, Increased citizen satisfaction on Judiciary services, reduces travelling time and cost for litigants,
93 Construction of staff 47,182,500,000 - - 47,182,500,000 Houses
“Realising Competitiveness and Industrialisation for Human Development ” 287 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 288
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
10 Constructions of AG's 4,000,000,000 - - 4,000,000,000 Legal Services close to the Regional Offices public
6 Constructions of NPS 2,400,000,000 - - 2,400,000,000 Prosecutions services Regional Offices improved
10 Constructions of NPS 4,000,000,000 - - 4,000,000,000 Civilianization services Regional Offices improved
5 Construction of SG 2,000,000,000 - - 2,000,000,000 Litigate civil cases and Regional Offices arbitral proceedings on behalf of the Central Government improved
5 Rehabilititation of High 8,100,000,000 - - 8,100,000,000 Improved access to court Court Buildings services, Increased citizen satisfaction on Judiciary services, reduces travelling time and cost for litigants,
8 Rehabilitation of 3,780,000,000 - - 3,780,000,000 Improved access to court Resident Magistrate services, Increased citizen Court Buildings satisfaction on Judiciary services, reduces travelling time and cost for litigants,
50 Rehabilitation of 13,500,000,000 - - 13,500,000,000 Improved access to court District Court Buildings services, Increased citizen satisfaction on Judiciary services, reduces travelling time and cost for litigants,
100 Rehabilitation of 13,500,000,000 - - 13,500,000,000 Improved access to court Primary Court Buildings services, Increased citizen satisfaction on Judiciary services, reduces travelling time and cost for litigants, No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
N/A Citizen - Centric Judicial 14,580,000,000 - 14,580,000,000 Reduction in litigation costs Modernization and and time, Justice Service delivery Project
2. Promoting the use 26 Citizen - Centric Judicial - 1,500,000,000 - 1,500,000,000 Reduction in litigation costs of ICT in access and Modernization and and time, delivery of justice Justice Service delivery Project
10 Citizen - Centric Judicial - 120,000,000 - 120,000,000 Reduction in litigation costs Modernization and and time, Justice Service delivery Project
10 Citizen - Centric Judicial - 150,000,000 - 150,000,000 Reduction in litigation costs Modernization and and time, Justice Service delivery Project
e-services for Justice Citizen - Centric Judicial - 800,000,000 - 800,000,000 Reduction in litigation costs delivery in place Modernization and and time, Justice Service delivery Project
Citizen - Centric Judicial - 1,200,000,000 - 1,200,000,000 Reduction in litigation costs Modernization and and time, Justice Service delivery Project
Citizen - Centric Judicial - 125,000,000 - 125,000,000 Reduction in litigation costs Modernization and and time, Justice Service delivery Project
“Realising Competitiveness and Industrialisation for Human Development ” 289 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 290
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
3. Strengthening legal 2% Citizen - Centric Judicial 10,799,700,000 - - 10,799,700,000 Improved access to court information and Modernization and services, Increased citizen archive management Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
6 Citizen - Centric Judicial - 3,720,110,000 - 3,720,110,000 Improved access to court Modernization and services, Increased citizen Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
1000 Citizen - Centric Judicial - 519,240,000 - 519,240,000 Improved access to court Modernization and services, Increased citizen Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
75 Citizen - Centric Judicial 4,410,000,000 - - 4,410,000,000 Improved access to court Modernization and services, Increased citizen Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
80% Citizen - Centric Judicial - 425,000,000 - 425,000,000 Improved access to court Modernization and services, Increased citizen Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
4. Improve timeliness 1 Citizen - Centric Judicial - 1,202,000,000 - 1,202,000,000 Improved access to court and reliability Modernization and services, Increased citizen of records and Justice Service delivery satisfaction on Judiciary information; Project services, reduces travelling time and cost for litigants, No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
150 Citizen - Centric Judicial - 1,125,000,000 - 1,125,000,000 Improved access to court Modernization and services, Increased citizen Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
140 Citizen - Centric Judicial - 1,823,923,000 - 1,823,923,000 Improved access to court Modernization and services, Increased citizen Justice Service delivery satisfaction on Judiciary Project services, reduces travelling time and cost for litigants,
5. Strengthening Reviewed legal Strengthening 45,000,000 - - 45,000,000 Increase investors guidelines and framework on Access to Justice And confidence and hence procedures for the improving and Protection of Human number of investors in provision of legal aid promoting business Rights (in Tanzania. Tanzania increased by and assistance in place and opera- June,2025 tionalized
Regulations to Strengthening 65,000,000 - - 65,000,000 Time used to resolve probate implement the Access to Justice And conflicts reduced by 75% Arbitration Act, Protection of Human 2020 prepared and Rights (in Tanzania) operationalized by Project June, 2026
Regulated probate Strengthening 55,000,000 - - 55,000,000 activities Access to Justice And Protection of Human Rights (in Tanzania) Project
“Realising Competitiveness and Industrialisation for Human Development ” 291 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 292
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
6 Increase under five 100% UNICEF Support to - 115,000,000 - 115,000,000 Right of children national birth registrations in Multi-sectoral and family recognitions Tanzania achieved
Second Child Strengthening - 49,615,000,000 - 49,615,000,000 Child care and protection Strategy prepared Access to Justice And system in place improved by and operationalized Protection of Human June, 2026 Rights (in Tanzania) Project
7. Promote good Second National Strengthening 35,000,000 248,000,000 - 283,000,000 Community trust on public governance and rule Human Right Action Access to Justice and institution observe human of law Plan prepared and Protection of Human right increased by 75% implemented by Rights in Tanzania June, 2025 Project
Policy Guidelines Strengthening - 54,000,000 - 54,000,000 and standards Access to Justice and for effective Protection of Human implementation Rights in Tanzania of Justice delivery Project system in place
Strategy for Strengthening 25,000,000 45,000,000 - 70,000,000 Public perception on protection human Access to Justice and protection of human right and individual Protection of Human right and individual right right developed and Rights in Tanzania increased by 50% operationalized Project
Quarterly reports on Strengthening 15,000,000 35,000,000 - 50,000,000 implementation of Access to Justice and strategy for protecting Protection of Human human and individual Rights in Tanzania rights in place Project
320 LSRP II 740,000,000 - - 740,000,000 Human resources capacity building improved No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
8. Promote Legal and regulatory Strengthening 200,000,000 32,000,000 - 232,000,000 Rate of citizens legally transparency of framework that Access to Justice And participate in social, natural wealth and gurantees right for Protection of Human economic and political resources contracts public to participate Rights (in Tanzania) activities increased by 20% ineconomic, social Project and political matters developed and operationalised by June, 2025
Natural Wealth and LSRP II 3,239,000,000 3,635,000,000 - 6,874,000,000 Public trust on resources Contracts implementation of natural Observatory Electronic wealth and resources System in place and contract operationalized
9. Strengthen provision 115 IMPACT 2,550,000,000 4,543,000,000 - 7,093,000,000 Complaints on access to of legal aid to the justice decreased by 50% district level
10. Ensure timely 6 Month Strengthening 175,000,000 25,245,000 - 200,245,000 Complaints on violations of response of all Access to Justice And human rights decreased by international Protection of Human 50% allegations of human Rights (in Tanzania) right violations in Project Tanzania
11. Expand efforts E-justice service e-justice Project 7,800,000,000 - - 7,800,000,000 Complaints on access to of adoption of delivery system in justice decreased by 50% e-services in legal place and operation- service delivery in a alized country. Integrated OAG's Citizens centric Judicial - 285,000,000 - 285,000,000 Efficiency in OAG's Service electronic service Modernization and Delivery delivery mechanism Justice Service Delivery in place and opera- tionalized
“Realising Competitiveness and Industrialisation for Human Development ” 293 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 294
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
12. Strengthen forfeited 80% LSRP II 350,000,000 - - 350,000,000 Access of wealth through assets and recovery criminality reduced by 80% in a country Assets recovery LSRP II 75,000,000 - - 75,000,000 management mechanism in place and implemented
13. Increase public Outreach LSRP II 53,000,000 - - 53,000,000 Complaints on good awareness of good programmes for good governance and rule of law governance and rule governance and rule 250,000,000 - - 250,000,000 reduced by 50% of law of law in place and operationalized
14. Develop an effective Information sharing BSAAT - 271,700,000 - 271,700,000 Crime rate decreased by coordination, data base among 35% collaboration and LEA’s in place and information sharing operationalized among LEA
15. Institute crime Integrated data base BSAAT - 25,560,000 - 225,560,000 Rate of reoffending reduced record management for crime record by 80% and coordination management and system coordination system
16. Develop and 7 BSAAT - 398,860,000 - 398,860,000 Stability in criminal subsector Operationalize policies in the criminal justice subsectors
SUBTOTAL 258,344,200,000 361,791,138,000 620,135,338,000 No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
WATER
1. Strengthen supply improve water Rural water Projects 350,000,000,000 450,000,000,000 800,000,000,000 Rural Water Supply infrastructures for services coverage for Construction, Projects constructed and clean and safe water in rural areas from Expansion and rehabilitated 70.10% in 2020 to rehabilitation of 90% in 2025 water infrastructure in rural areas including transmission pipes, distribution networks
Construction of charco 150,000,000,000 150,000,000,000 300,000,000,000 dams, water wells and cattle troughs for livestock
Community Based 3,000,000,000 2,000,000,000 5,000,000,000 Water Supply Organizations (CBWSOs) for enhancing sustainability of rural water supply and sanitation services
Improve urban Construction, 455,000,000,000 500,000,000,000 955,000,000,000 Urban Water Supply water services expansion and Projects constructed and coverage from 84% rehabilitation of water rehabilitated in 2020 to 95% in infrastructure for 2025 Urban Water Projects
“Realising Competitiveness and Industrialisation for Human Development ” 295 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 296
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Identifying and 380,000,000,000 500,000,000,000 880,000,000,000 Construction of Bulk Water Supply (National Water Grid) Projects to ensure adequate and affordable supply of water for enhancing industrial- ization in urban areas
Conduct feasibility studies, 50,000,000,000 50,000,000,000 Lake Victoria - Singida and design and construction Dodoma Water Supply of Lake Victoria to Project Constructed by 2024 Singida and Dodoma Water supply project
Construction of the 150,164,000,000 250,000,000,000 400,164,000,000 Rufiji – Dar es Salaam Project Mwalimu Nyerere water constructed by 2025 supply project from Rufiji – Dar es Salaam Water supply projects
Construction of 10,000,000,000 409,000,000,000 419,000,000,000 Kidunda dam project Kidunda dam completed by 2025
Construction of Farkwa 50,000,000,000 500,000,000,000 550,000,000,000 Construction of Farkwa dam dam and Water Supply and water supply networks Networks completed by 2024
2. Establish Improve the Construction, 40,000,000,000 125,000,000,000 165,000,000,000 Sewerage infrastruc- programmes and sanitation services Rehabilitation and tures (treatment facilities, mechanisms for from 15% in 2020 to expansion of sewerage sludge, storage) projects management, 30% in 2025 infrastructures such constructed by 2025 monitoring and as sludge treatment assessment of water facilities, storage, and wastewater treatment ponds, quality sewer lines in all areas No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Promote appropriate 300,000,000 0 300,000,000 Project completed by 2024 technologies for further treatment of effluent and sludge for recycling and re-use purposes
3. Strengthen Water sources Management, 2,500,000,000 3,200,000,000 5,700,000,000 Agreement on conservation demarcated development and trans-boundary water and protection and gazette for equitable utilization of resources established and programmes of protection and trans- boundary water implemented by 2025 water resources and conservation resources water sources increased from 80 in 2020 to 200 in 2026 Construction of 20,000,000,000 100,000,000,000 120,000,000,000 Songwe Dam and its allied Songwe Dam in infrustrcuture constructed Songwe River by 2025
Conservation and 5,020,000,000 1,520,000,000 6,540,000,000 Water Sources demarcated protection of water and gazzeted by 2025 resources and water sources
Construction of 23 80,000,000,000 70,000,000,000 150,000,000,000 23 Water storage infrastruc- water harvesting infra- tures constructed by 2025 structures
4. Strengthen Construction/ 1,550,000,000 5,250,000,000 6,800,000,000 Water Laboratories water resources Rehabilitation of water constructed/rehabilitated research systems, Laboratories and equip and equipped by 2025 data collection, them processing, storage and dissemination of Management of water 300,000,000 100,000,000 400,000,000 Water quality management water statistics quality for competing systems established by 2023 beneficial water uses
“Realising Competitiveness and Industrialisation for Human Development ” 297 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 298
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
Strengthening 800,000,000 3,000,000,000 3,800,000,000 Monitoring stations water resources constructed and installed Data collection and by 2025 management systems
Monitor water bodies 650,000,000 150,000,000 800,000,000 Water quality management to conserve aquatic and pollution control ecosystem and strategy implemented by improve ambient water 2025 conditions
Water quality 250,000,000 0 250,000,000 Appropriate water quality management technologies promoted by technologies promoted 2023
SUBTOTAL 1,749,534,000,000 3,069,220,000,000 - 4,818,754,000,000
LANDS, HOUSING AND HUMAN SETLLEMENTS DEVELOPMENT
1. Promote and 45 Master plans, Planning, Surveying 36,077,000,000.00 4,704,220,000.00 0 40,781,220,000.00 24 Master plans prepared facilitate planning, 12,838 urban detailed and Land Titling • 10,025 detailed layout surveying and titling layout plans, 4,602,025 Programme plans prepared of land parcels for plots surveyed investment and and approved, • Curtailed land disputes human settlement 4,059,609Certificates • Planned, resilient and of Right of Occupancy serviced cities (CROs issued), 3,463,474 Certificates 2,500,000 Plots surveyed and of Customary Right of approved Occupancy (CCROs) 875,000 Certificates of Right issued, 37% of land of Occupancy (CROs) issued surveyed474,885.4 Acres of land secured for investment purpose No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
21,738 residential Land Tenure 500,000,000.00 0 0 500,000,000.00 20,000 residential licenses licenses Improvement Project issued 576 villages issued with certificates of village land aerial photographs prepared for 24 townships • 125,000 CROs issued
1,452,416acres of Planning, Surveying 3,600,000,000.00 13,823,945,000.00 0 17,423,945,000.00 593,750 acres of land land allocated and and Land Titling allocated and protected for protected for public Programme public use use
2. Prepare urban, 25% of general land Land Tenure 3,600,000,000.00 13,823,945,000.00 0 17,423,945,000.00 500,000 urban landed islands and coastal covered by Informal Improvement Project properties regularized development master settlements 600,000 village land parcels plans regularized • Reduced informal settlements • Secured land tenure
Planning, Surveying 1,800,000,000.00 0 0 1,800,000,000.00 • 987,000 urban landed and Land Titling properties Regularized Programme • 13,000 farms allocated 1,000,000 village landed properties Regularized
200 Nautical miles 100,000,000.00 0 0 100,000,000.00 • 987,000 urban landed equivalent to 370 km properties Regularized length of Exclusive • 13,000 farms allocated Economic Zone (EEZ) 1,000,000 village landed extended into the properties Regularized Indian Ocean
“Realising Competitiveness and Industrialisation for Human Development ” 299 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 300
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
• 12,319 with Planning, Surveying 1,600,000,000.00 0 0 1,600,000,000.00 Land use plans in three (3) Villages Land Use and Land Titling economic corridors covering Plans Programme strategic projects including Standard Gauge Railway • 95 districts with (SGR), Oil Pipeline (EACOP) Land Use Plans and Rufiji Mwalimu Nyerere hydro-power generation projects prepared
Land Use Planning 6,735,900,000.00 0 0 6,735,900,000.00 • Land Use Plans prepared Project in 54districts • Reduced land conflicts
18,006,500,000.00 0 0 18,006,500,000.00 • Land Use Plans prepared in 4,131 Villages • Land use Plans prepared along districts with strategic projects (SGR, EACOP and Mwalimu Nyerere Power Project)
6,051,000,000.00 0 0 6,051,000,000.00 • Land use plans prepared in 874 villages located along semi-desert and pastoral zones • Reduced land conflicts
2,006,969,072.00 0 0 2,006,969,072.00 Reduced rural land use disputes Village implementing Land Use Management (VILUM) trained on VLUP bin 5005 Villages No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
3. Upgrade and scale ILMIS in 26 Regional Land Tenure 56,690,000,000.00 86,365,860,000.00 0 143,055,860,000.00 • 25 Regional Land Offices up an Integrated Land Offices and Improvement Project buildings and 180 Land Land Management 185 Councils Land Councils offices with ILMS Information System Offices • mproved land service delivery
7 days under 5 Land Tenure 4,700,000,000.00 7,694,329,000.00 0 12,394,329,000.00 • Improved business procedures Improvement Project working environment • Investment on land increased
Mainstream land National Land Data Improvement of 1,000,000,000.00 8,538,159,300.00 0 9,538,159,300.00 • Geo-portal for NLDI oper- management and Infrastructure (NLDI) National Land Data ationalized planning systems in Place Infrastructure Project • Functional NLDI in place in other sectoral development plans 26 Regions Base 5,100,000,000.00 117,348,990,700.00 0 122,448,990,700.00 • Large Scale Base maps maps for Urban Centers for 25 30Continuously Regions and Small-scale Operated Reference Maps Nationwide Stations (CORS) prepared 1,188 Control Points • Reduced cost ofland survey and mapping
1,839 Kilometres International 13,621,526,962.00 0 0 13,621,526,962.00 • nternational boundaries inland and 2,036.5 Boundaries protocols signed Kilometres in water between Tanzania and for international neighbouring countries boundaries between Tanzania and eight (8) neighbouring countries reaffirmed
“Realising Competitiveness and Industrialisation for Human Development ” 301 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 302
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Promote the use of 139 functional Construction and 2,240,000,000.00 0 0 2,240,000,000.00 • Improved working ICT in land surveying DLHTs Offices Rehabilitation of environment and titling Buildings • Increased pace of resolution for land disputes • Reduced land conflicts 3,000 students in Construction and 960,000,000.00 0 0 960,000,000.00 • 2 dormitories constructed Ardhi Institutes. Rehabilitation of at ARIMO Buildings
SUBTOTAL 164,388,896,034 252,299,449,000 0 416,688,345,034
INFORMATION, CULTURE, ARTS AND SPORTS SECTORS
1. Promote strategic 7 Arts centre Construction of Culture 1,000,000,000 1,000,000,000 National Arts Centre investments in established Complex (Project No. established creative industry; 6356)
10 Arts infrastruc- Construction of Open 3,000,000,000 3,000,000,000 Arts infrastructure put in tures in place Air Theatre (Project No. place and improved 6355)
1445 Artsts and 1,000,000,000 1,000,000,000 Film investment promoted stakeholders invested in film industries
5000 standard films produced No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2. Strengthen 4 research 750,000,000 750,000,000 Tanzanians customs protection of artistic conducted promoted and preserved works, literary works and folklores; 4 Acts and 100,000,000 100,000,000 Legal and Institutional Regulation reviewed framework strengthened and and 1 policy drawn high returns to practitioners obtained
3. Develop and Culture and Art Tanzania Culture and 7,505,000,000 7,505,000,000 Quality of Culture, Arts and implement works promoted Arts Trust Fund Films produced nationally to capacity building and practitioners (Project No. 6502) improve and be internation- programmes enhanced ally recognized to information, culture, arts and 4340 music works Copyright Society of 200,000,000 200,000,000 Arts works formalized sports personnel/ registered Tanzania (COSOTA – stakeholders Project No. 6260) for effective 180 operation 1,100,000,000 1,100,000,000 Arts works protected management, conducted compliance, professionalism 75 awards 1,750,000,000 1,750,000,000 Film talents identified and improvement of products and 3000 talents services; identified
20 festival conducted
4. Promote R&D on 9 researches on African Liberations 250,000,000 250,000,000 Traditional culture preserved culture, traditions customs and Heritage Programme and values aiming at traditions of ethnic (Project No. 6293) restoring, promoting groups in Tanzania and preserving them conducted for the current and future generations;
“Realising Competitiveness and Industrialisation for Human Development ” 303 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 304
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Construct a new 1 Tanzania Public Information 10,000,000,000 10,000,000,000 Tanzania Information Tanzania Information Information (Project No. 6567) Auditorium present Auditorium with a Auditorium press center and recording studios in Dododma;
6. Implement the 300 heritage sites African Liberations 5,000,000,000 5,000,000,000 African Liberation Heritage African Liberation and 250 Witnesses Heritage Programme preserved Heritage Programme (Project No. 6293) with focus on identifying and 20 awareness 250,000,000 250,000,000 Awareness of history African restoring the campaign Liberation created history of liberation conducted struggles in Africa 50% of youth and construction of understood a regional centre for the meaning of the programme; campaign
1 Act in place 100,000,000 100,000,000 African liberation heritage mainstreamed in national programmes
95% of program issues accomodated in policy and Acts
Regional centre for African Liberations 53,158,000,000 53,158,000,000 African Liberation Heritage African Liberation Heritage Programme Programme centre present. Heritage Programme (Project No. 6293) No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
7. Construct a film 1 Multi-Purpose 15,000,000,000 15,000,000,000 Multi-Purpose Film Complex complex with Film Complex in place constructed modern film facilities such as cinema halls, film studios, movie theaters and movie shops;
8. Strengthen National 200 Mil. People speak Kiswahili strengthened 125,000,000 125,000,000 Tanzanians participated in Kiswahili Council and Kiswahili globally. globally East African Kiswahili Council promote Kiswahili activities regionally and internally; 5 Tanzanians employed and participated
2 motor vehicles 2,000,000,000 2,000,000,000 BAKITA strengthened bought
1 set of interpreta- tions equipment
45 staff employed
2000 new 1,000,000,000 1,000,000,000 Kiswahili vocabularies and vocabularie added proper use of Kiswahili enhanced
2,500,000 new kiswahili words added
“Realising Competitiveness and Industrialisation for Human Development ” 305 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 306
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
10 program for marketing Kiswahili organized
25 Kiswahili scientific 800,000,000 800,000,000 The use of Kiswahili publications published language expanded
86 Experts trained 250,000,000 250,000,000 Availability of Interpreters and translators in Kiswahili language
9. Construct modern All sports National Sports 11,000,000,000 11,000,000,000 Modern Sports Stadium in football ground infrastructure Complex place in Dodoma and constructed and (Project No. 6523) improve Dar es rehabilitated Salaam Sports Complex (Benjamin 1 Sports Construction of 400,005,000,000 400,005,000,000 Availability of public Inter- Mkapa and Uhuru Infrastructure Dodoma Sports nationally accredited sports Stadiums); constructed Complex (Project No. and games facilities 6503)
15 stadia rehebilitated 50,000,000,000 50,000,000,000 Sports infrastructures improved all over the 15 stadia constructed country 40 stadia private owened No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
10. Promote sports at 4 UMITASHUMTA Improve training in 800,000,000 800,000,000 Various talents identified and all levels including competitions sports and sporting sports improved traditional sports; organized activities at all education levels in collaboration with stakeholders;
4 UMISSETA competitions organized
95% of youth 100,000,000 100,000,000 100,000,000 300,000,000 Peace, tranquility, patriotism participated and national values promoted
1000 Athletes joined 200,000,000 300,000,000 500,000,000 Athletes health improved Social Security Funds
20 Teams prepared 20,000,000,000 20,000,000,000 National Teams prepared and participated in International competitions
350 iternational 1,000,000,000 1,000,000,000 1,000,000,000 3,000,000,000 Players/Athletes participation Competitions in international competitions participated increased
120 athletes identified and performing well
1,500 clubs 100,000,000 100,000,000 300,000,000 500,000,000 Public increased in sports registered participations
250 joggong clubs registered
500 sports festival organized
“Realising Competitiveness and Industrialisation for Human Development ” 307 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 308
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
100 sport academies 20,000,000,000 20,000,000,000 Sports professionals established increased
200 long courses 100,000,000 100,000,000 Sports experts increased graduated
11. Construct two Arts Arts and Sports Construction of 52,500,000,000 52,500,000,000 Availability of public Interna- and Sports Arena with Arena and Recreation and Sports tionally accredited recreation above 10,000 sitting Recreation Sport Centers and sports center facilities capacity in Dodoma centers facilities (Project No. 6504) and Dar es Salaam to and infrastructure facilitate indoor sports, constructed artistic performances and international sports and arts festivals that will be held in Tanzania;
12. Develop and protect 6055 pictures 360,000,000 360,000,000 Tanzania to be centre of areas earmarked for taken for country filming culture, arts, sports advertisments and leisure activities; 7 awareness 500,000,000 500,000,000 National patriotism, campaign promotion and protection of national values enhanced
6 education program 400,000,000 400,000,000 Implementation strategies conducted designed
30 Events conducted
95% of public to the area events taking place participated No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
13. Establish Journalists 950 Media provide Public Information 500,000,000 500,000,000 Public are provided with Accreditation Board, information to the (Project No. 6567) information timely Independent Media public Council and Media Training Fund in Zero medias will be 500,000,000 500,000,000 Media freedom protected accordance to the penalized requirement of 850 press cards Media Services Act provided No. 12 of 2016; 85% Media owners are given Act education
95% of journalists are 50,000,000 50,000,000 Employment contracts given given with working to journalists contracts
50 Information 50,000,000 50,000,000 Receiving and provision Department staff of information adhere to employed governing laws
200 working tools 5,000,000,000 5,000,000,000 Information Services (including studio Department strengthened equipments)
10 Motor Vehicles
530 Online and 40,000,000 40,000,000 Access to information Social Media promoted
950 media registered 500,000,000 500,000,000 Tanzania promoted in and outside the country
“Realising Competitiveness and Industrialisation for Human Development ” 309 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 310
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
14. Construct Sanaa Extension of creative Sanaa House 30,000,000,000 30,000,000,000 One stop centre of public House in Dodoma industry service to institutions in charge of that will host stakeholders creative industry present National Arts Council, Copyright Society of Tanzania (COSOTA), Tanzania Film Board, National Kiswahili Council and other related institutions;
15. Construct national 1 National Construction of Culture 15,000,000,000 15,000,000,000 National Culture Complex culture complex at Culture Complex Complex (Project No. constructed Kiromo, Bagamoyo; constructed 6356)
16. Extend coverage 161 Districts Covered Expansion of TBC 200,000,000,000 200,000,000,000 161 Districts covered by TBC of Tanzania Coverage Broadcasting (Project No. 4279) Corporation (TBC) radio and television 340 staff employed 161 Districts covered with TBC
17 Construct TBC 9 (1 in Dodoma and 50,000,000,000 50,000,000,000 Modern offices and studios headquarters in 8 at zonal) built Dodoma; TBC is accessible all 100,000,000 100,000,000 National Public Broadcaster the world through Channels strengthened TBC App (TBC online) No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
18 Strengthen 1 state of the art Installation of a New 20,411,000,000 20,411,000,000 Access to information Tanzania Standard printing press to be Modern Printing Plant promoted and developed Newspapers (TSN) operational in Dodoma through improving with focus on (Project No. 6505) printing services provided installation of a new by Tanzania Standard printing facility of Newspapers (TSN) TSN in Dodoma and improvement of products and services;
19. Improve training 5 classroom, 1 Rehabilitation of 12,000,000,000 12,000,000,000 Classrooms, studio and infrastructure studio, 1 library Bagamoyo College of library in place and facilities at rehabilitated and Arts Bagamoyo Arts and studio equipments (Project No.4353) Culture Institute bought and Malya Sports Development 20 buildings and Malya Sports 2,000,000,000 2,000,000,000 Infrastructure improved College including stadia rehabilitated Development College construction and constructed (Project No. 6385) of classrooms, dormitories, library and establishment of Sports Academy
SUBTOTAL 997,554,000,000 1,200,000,000 1,700,000,000 1,000,454,000,000
“Realising Competitiveness and Industrialisation for Human Development ” 311 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 312
No. Areas of Targets by 2025 Expected Outputs Interventions DPs Private Sector Total
FOREIGN AFFAIRS AND EAST AFRICA COOPERATION
1. Develop and Tanzania interests 5,245,683,589 0 0 5,245,683,589 Tanzania norms well- implement a voiced and country articulated and interests well strategic framework image branded defended and safeguarded for political and economic diplomacy Tanzania good 183,707,520 183,707,520 Improved diplomatic and relations with socio-political between neighbour countries Tanzania and its neighbor promoted and countries enhanced
2. Strengthen and Tanzania economic 58,361,593,155 58,361,593,155 Tanzania products expand cooperation interests to specifically horticulture and and participation other countries, fish products fetches reliable in regional and regional bodies and competitive markets international and international abroad development organization attained and sustained 142,086,790 142,086,790 Increased level of foreign grants, aids and concessional loans from Development Partners and International Financial Institutions
106,200,000 106,200,000 Increased level of investment in agro-pro- cessing and manufacturing industries resulting from increased level of FDIs
118,057,863 118,057,863 Number of Tanzanians employed in regional and international bodies increased No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
245,840,363 245,840,363 Number of Tanzania projects incorporated in various regional and Internationals programs
3 Construct and Mission buildings 187,175,033,388.3 187,175,033,388 Tanzania image abroad rehabilitate constructed and branded; Increased revenue; Tanzania’s embassies’ rehabilitated Cost of hiring buildings buildings abroad reduced; and Conducive working environment
4. Construct lecture Construct nine (9) Rehabilitation of Office 11,915,564,613 11,915,564,613 theatres at the lecture theatres 12 Building Centre for Foreign class rooms, hostels Relations in Dar es library and canteen. Salaam.
SUBTOTAL 263,493,767,281 0 0 263,493,767,281
TOTAL 13,839,525,329,313 13,119,074,394,324 163,562,000,000 27,122,161,723,637
“Realising Competitiveness and Industrialisation for Human Development ” 313 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 314
E. IMPLEMEMTATION MATRIX FOR SKILLS DEVELOPMENT
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
TRANSPORT IMPROVE TECHNICAL AND VOCATIONAL EDUCATION TRAINING
1. Facilitate 30 Construct new 30 120,000,000,000 0 0 No. of RVTSCs constructed implementation DVTSCs through Skills of the National Development Levy Skills Development (SDL) Programme (2021/22-2025/26) 3 Construct RVTSCs 30,000,000,000 0 0 No. of RVTSCs constructed through SDL
3 Rehabilitate RVTSCs 3,000,000,000 0 0 No. of RVTSCs rehabilitated through SDL
2 Construct Polytechnics 26,000,000,000 0 0 No of Polytechnics Colleges Colleges through constructed TELMS
500 Recruit New 500 TVET 1,000,000,000 0 0 teachers
35 Equip and Modernize 70,000,000,000 20,000,000,000 0 No. of DVTSCs infrastructure TVET infrastructure equipped and modernized through EASTRIP
Infrastructure equipped 20,000,000,000 20,000,000,000.00 0 No. of RVTSC infrastructure and modernized SET - equipped and modernized SWISSCONTACT
Polytechnics Colleges 110,000,000,000 68,750,000,000 0 178,750,000,000 No. of Polytechnics Colleges infrastructure equipped infrastructure equipped and and modernized modernized through SET - SWISSCONTACT No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2 Promote 20,000 Train youths in 1,000,000,000 0 0 1,000,000,000 No. of youths trained on employability skills employable skills employable skills for population through SET - groups with special SWISSCONTACT needs programme
15,000 Train women in 800,000,000 0 0 800,000,000 No. of women trained on employable skills employable skills SET - SWISSCONTACT programme
5,000 Train people living 700,000,000 0 0 700,000,000 No. of people living with with disabilities in disabilities trained on employable skills employable skills through SET - SWISSCONTACT
4 Establish 4 centres of 0 53,500,000,000 0 53,500,000,000 Centre of Excellence in excellence in ICT, Leather ICT, leather technology, Technology, Renewable renewable energy and air Energy and Air Transport transport established through EASTRIP
3. Mainstream ICT 700,000 Develop and 5,000,000,000 0 0 5,000,000,000 TVET Data MIS developed applicability at operationalize TVET and operationalized all levels of skills Data Management training and learning Information System (TVET Data MIS) TELMS
50% Mainstream the use 5,000,000,000 0 0 5,000,000,000 Percentage of operations of ICT in regulatory automated bodies and TVET institutions through EASTRIP
“Realising Competitiveness and Industrialisation for Human Development ” 315 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 316
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
12,000 Strengthen TVET 500,000,000 5,000,000,000 0 5,500,000,000 No. of new TVET teachers teaching staff capacity trained on CBET delivery and assessment through SDL
150 Improve Academic 4,000,000,000 0 0 4,000,000,000 No. of TVET institutions Quality audit in NACTE audited on academic quality and VETA through SDL
6000 Register Technical 400,000,000 0 400,000,000 No. of technical teachers Teachers through SET - registered SWISSCONTACT
200 200 TVET institutions 4,000,000,000 0 0 4,000,000,000 No. of New TVET institutions registered by June, registered 2026 though SET - SWISSCONTACT
400 Guide TVET institutions 4,000,000,000 0 0 4,000,000,000 No. of TVET institutions on examinations guided on examinations and and certification certification management management through SDL
4. Mainstream and 100 Review and develop 3,000,000,000 2,000,000,000 0 5,000,000,000 No. of new curricular integrate theory Curricular on emerging developed and practice in the technologies through development of TELMS training curricular 15 Conduct labour market 2,000,000,000 1,000,000,000 0 3,000,000,000 No. of labour market reports survey through TELMS produced
50 ESPJ 500,000,000 750,000,000 0 1,250,000,000 No. of curricula reviewed No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Increase access to 5 Coordinate Research 0 200,000,000,000 0 200,000,000,000 No. of Labour Market post-basic learning on labour market Information assessment opportunities such information through reports produced as workplace-learn- TELMS ing programmes, including formal 100,000 Improving the 0 200,000,000,000 0 200,000,000,000 No. of apprentices certified apprenticeships, implementation of internships and the recognition and upgrading informal formalization of skills apprenticeship; acquired outside the formal education delivery system through ILO
30 Increase and enhance 0 50,000,000,000 0 50,000,000,000 No. of new incubation incubation centers centers established in order to promote innovations so as to foster skills development for TVET graduates to innovate and create self-employ- ment through EASTRIP
10 EASTRIP 7,000,000,000 8,000,000,000 0 15,000,000,000 No.of existing incubation centers re-equipped
150,000 Increase enrolment 1,000,000,000 1,000,000,000 0 2,000,000,000 No. of technicians enrolled of technician level and trained students to enhance engineering-techni- cian-artisan ratio as to improve efficiency in construction and production sectors SDL
“Realising Competitiveness and Industrialisation for Human Development ” 317 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 318
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
20% Establish a deliberate 200,000,000 50,000,000,000.00 0 50,200,000,000 Percentage of TVET strategy to enable graduates, youths and younger innovators women groups linked with and various youths credit facilities institutions in and women groups to to access soft loans establish productive and entrepreneurial ventures through SDL
20% SDL 1,000,000,000 0 0 1,000,000,000 Percentage of TVET graduates accessed toolkit soft loans
SET – SWISSCONTACT 1,000,000,000 0 0 1,000,000,000 Tracer study report in place
SUBTOTAL 422,100,000,000 520,000,000,000 0 942,100,000,000
SCIENCE , TECHNOLOGY AND INNOVATION
1. Strengthen Private Sector, NFAST 25,000,000,000 13,500,000,000 9,500,000,000 48,000,000,000 No. of STI Fora conducted Collaboration with Development No. of Upscaled invention Private Sector and Partners and No.of proposal prepared and DPs individual funded contributing to STI activities increased by 2025
Forty-two (42) HL NFAST/HEET/EASTRIP 283,800,000,000 18,500,000,000 12,600,000,000 314,900,000,000 No. of infrastructure and R&D Institutions developed and equiped strengthened to National Research lab inplace conduct research % increase of accreditated activities by 2025. research lab No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2. Creation of 500 research and NFAST 55,000,000,000 25,500,000,000 71,000,000,000 151,500,000,000 No of research and favourable innovation projects innovation project environment for funded and 400 supported Investment in local technologies No of knowledge product research, innovation developed by 2025 developed/produced and industrial development Sixty (60) innovation NFAST 18,000,000,000 11,000,000,000 24,000,000,000 53,000,000,000 No of hubs and incubators focusing on value system support infra- established addition structures developed and strengthened by 2025
3. Promotion of 10 SMEs, 10 NFAST 11,000,000,000 7,000,000,000 16,000,000,000 34,000,000,000 National Innovation system innovation initiatives Clusters and 10 established at LGAs through Start-up companies No. of SMEs, Clusters, start-up supporting SMEs, established in each companies established Clusters and council by 2025 start-ups
4. Build Skilled and Increase human NFAST/HEET/EASTRIP 84,000,000,000 8,000,000,000 3,000,000,000 95,000,000,000 No. of expert trained locally competent Human capital on STI by 20% Capital in STI in 2025
250 - Human 89,000,000,000 6,000,000,000 3,000,000,000 98,000,000,000 No of experts trained abroad Resources in the strategic and rare areas of science, technology and innovation increased by 2025
STI policy NFAST 8,000,000,000 3,000,000,000 3,000,000,000 14,000,000,000 Reviewed STI Policy frameworks in place by 2022
“Realising Competitiveness and Industrialisation for Human Development ” 319 NATIONAL FIVE YEAR DEVELOPMENT PLAN ANNEXES FYDP III - 2021/22 – 2025/26 320
No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
5. Establishment Centre 12 discipline specific NFAST/HEET/EASTRIP/ 762,700,000,000 9,800,000,000 5,500,000,000 778,000,000,000 5 Center of excellence of Excellencies and centres of excellence ACE II established research chairs in and 2 research chairs 2 Center of excellence building strong and established and enhanced sustainable economy supported by 2025 2 reseach chairs established
Skills on emerging Capacity Building 8,000,000,000 600,000,000 4,000,000,000 12,600,000,000 No. of individuals with digital technology in emerging digital emerging digital technology increased by 80% technology skills
6. Support local R&D, Skills on emerging NFAST/HEET/EASTRIP/ 8,000,000,000 600,000,000 4,000,000,000 12,600,000,000 Skills development in investment and digital technology ACE II emerging digital technology manufacturing of increased by 80% enhanced ICT equipment and its end life management
SUBTOTAL 1,344,500,000,000 102,900,000,000 151,600,000,000 1,599,000,000,000
LABOUR, EMPLOYMENT AND PERSON’S WITH DISABILITY
1. Extend social 30 Social Security Reform 575,000,000.00 130,000,000.00 0 705,000,000.00 Social and economic risks, protection coverage Programme (2019/20- deprivation and vulnerability; to the formal and 2022/23) and protection of human informal sector. rights improving labour market results.
Decent Work Country 282,253,200.00 0 282,253,200.00 Programme (2020/21- 2024/25) No. Areas of Targets by 2025 Programmes/ Budget Expected Outputs Interventions Projects Government DPs Private Sector Total
2. Promoting 12.1 percent and National Skills 549,313,314,000 910,974,650 0 550,224,288,650 National Skills Development employable skills of 54.0 percent High Development Programme (2021/22- Tanzanians labour and middle levels Programme (2021/22- 2025/26) developed, force particularly respectively 2025/26) implemented and Monitored for youth, women, in close collaboration with and Persons with Private Sector. Disabilities.
3. Promote Youth 38.3% (Youth Decent Work Country 1,100,000,000 0 1,100,000,000 5,000 youth groups have Economic in vulnerable Programme (2020/21- been capacitated on Empowerment employment) 2024/25) livelihood diversification through provision options along the seleced of soft loans and value chains promotion of economic and technological innovation.
4. Increase proportional Youth Economic 470,422,000.00 0 470,422,000.00 A revised National Life Skills of youth with Empowerment Fund Standard Guide and Training Upbringing, Manual for Out of School Guidance and Youth in place Counselling Services, systems and economic empowerment.
5 Promote Decent Work Country 20,000,000.00 588,027,500.00 0 608,027,500.00 Persons wiith Disabilities Inclusiveness Programme (2020/21- empowered to participate and Economic 2024/25) in and benefit from in Empowerment socio-economic activities for Persons with targeted for poverty Disabilities. reduction.
SUBTOTAL 549,908,314,000.00 3,481,677,350.00 0 553,389,991,350.00
TOTAL 2,316,508,314,000.00 626,381,677,350.00 151,600,000,000.00 3,094,489,991,350.00
“Realising Competitiveness and Industrialisation for Human Development ” 321
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